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Arthur J. Gallagher (Arthur J. Gallagher) 5-Year RORE % : 7.61% (As of Dec. 2023)


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What is Arthur J. Gallagher 5-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. Arthur J. Gallagher's 5-Year RORE % for the quarter that ended in Dec. 2023 was 7.61%.

The industry rank for Arthur J. Gallagher's 5-Year RORE % or its related term are showing as below:

AJG's 5-Year RORE % is ranked worse than
50.34% of 439 companies
in the Insurance industry
Industry Median: 7.64 vs AJG: 7.61

Arthur J. Gallagher 5-Year RORE % Historical Data

The historical data trend for Arthur J. Gallagher's 5-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.

Arthur J. Gallagher 5-Year RORE % Chart

Arthur J. Gallagher Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.83 23.35 16.12 15.40 7.61

Arthur J. Gallagher Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
5-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 15.40 13.81 11.71 12.14 7.61

Competitive Comparison of Arthur J. Gallagher's 5-Year RORE %

For the Insurance Brokers subindustry, Arthur J. Gallagher's 5-Year RORE %, along with its competitors' market caps and 5-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.


Arthur J. Gallagher's 5-Year RORE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Arthur J. Gallagher's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Arthur J. Gallagher's 5-Year RORE % falls into.



Arthur J. Gallagher 5-Year RORE % Calculation

Arthur J. Gallagher's 5-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 4.44-3.52 )/( 21.77-9.68 )
=0.92/12.09
=7.61 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 5-year before.


Arthur J. Gallagher  (NYSE:AJG) 5-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, 5-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.


Arthur J. Gallagher 5-Year RORE % Related Terms

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Arthur J. Gallagher (Arthur J. Gallagher) Business Description

Traded in Other Exchanges
Address
2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissioning from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.
Executives
Douglas K Howell officer: Vice President and Chief ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
Christopher E Mead officer: VICE PRESIDENT 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
David S Johnson director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
Richard C Cary officer: Controller C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Sherry S Barrat director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Susan E Mcgrath other: Vice President C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Kay W Mccurdy director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Patrick Murphy Gallagher officer: Vice President 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Scott R Hudson officer: CORPORATE VP C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William L Bax director TWO PIERCE PLACE, C/O ARTHUR J. GALLAGHER & CO., ITASCA IL 60143
Mark H. Bloom officer: Vice President 8200 JONES BRANCH DRIVE, MCLEAN VA 22102
Gallagher J Patrick Jr director, officer: President & CEO C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143

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