Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Auto Trader Group's 3-Year RORE % for the quarter that ended in Sep. 2023 was 4.94%.
The industry rank for Auto Trader Group's 3-Year RORE % or its related term are showing as below:
ATDRF's 3-Year RORE % is ranked better than 55.31% of 537
companies
in the Interactive Media industry
Industry Median: 0.56
vs ATDRF: 4.94
Auto Trader Group 3-Year RORE % Historical Data
The historical data trend for Auto Trader Group's 3-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Auto Trader Group's 3-Year RORE %
For the Internet Content & Information subindustry, Auto Trader Group's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Auto Trader Group's 3-Year RORE % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Auto Trader Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Auto Trader Group's 3-Year RORE % falls into.
Auto Trader Group 3-Year RORE % Calculation
Auto Trader Group's 3-Year RORE % for the quarter that ended in Sep. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2023 and 3-year before.
Auto Trader Group (OTCPK:ATDRF) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Auto Trader Group 3-Year RORE % Related Terms
Thank you for viewing the detailed overview of Auto Trader Group's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Auto Trader Group (Auto Trader Group) Business Description
Auto Trader Group PLC is a digital automotive marketplace based in the UK and Ireland, which provides trading channels for a range of vehicles such as cars, trucks, vans, bikes, and farm machinery, as well as relevant services such as car insurance, loans, valuations, and vehicle check services. The company generates revenue from three streams. It derives trade revenue from retailers and home traders advertising vehicles and using Auto Trader's products, which represent the majority of the group income. Consumer services revenue stems from private sellers placing advertisements and from the company's partners who provide services to consumers. Display advertising revenue is earned from manufacturers or their advertising agencies, which advertise their brand or services on the marketplace.
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