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Merck KGaA (XTER:MRK) 3-Year RORE % : -3.44% (As of Dec. 2023)


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What is Merck KGaA 3-Year RORE %?

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. Merck KGaA's 3-Year RORE % for the quarter that ended in Dec. 2023 was -3.44%.

The industry rank for Merck KGaA's 3-Year RORE % or its related term are showing as below:

XTER:MRK's 3-Year RORE % is ranked worse than
54.84% of 1003 companies
in the Drug Manufacturers industry
Industry Median: 1.82 vs XTER:MRK: -3.44

Merck KGaA 3-Year RORE % Historical Data

The historical data trend for Merck KGaA'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.

* Premium members only.

Merck KGaA 3-Year RORE % Chart

Merck KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.63 -27.60 37.45 20.90 -3.44

Merck KGaA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.90 14.29 5.15 3.12 -3.44

Competitive Comparison of Merck KGaA's 3-Year RORE %

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA'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.


Merck KGaA's 3-Year RORE % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Merck KGaA's 3-Year RORE % falls into.



Merck KGaA 3-Year RORE % Calculation

Merck KGaA's 3-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 6.49-7.03 )/( 21.16-5.45 )
=-0.54/15.71
=-3.44 %

* 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 Dec. 2023 and 3-year before.


Merck KGaA  (XTER:MRK) 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.


Merck KGaA 3-Year RORE % Related Terms

Thank you for viewing the detailed overview of Merck KGaA's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Merck KGaA (XTER:MRK) Business Description

Address
Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293
Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
Executives
Belén Garijo Lopez Chair of the Executive Board
Peter Guenter Member of the Executive Board
Dr. Matthias Heinzel Member of the Executive Board
Dr. Marcus Kuhnert Board of Directors

Merck KGaA (XTER:MRK) Headlines

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