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.
Shin-Etsu Chemical Co's 5-Year RORE % for the quarter that ended in Dec. 2023 was 9.61%.
The industry rank for Shin-Etsu Chemical Co's 5-Year RORE % or its related term are showing as below:
SHECF's 5-Year RORE % is ranked better than 72.88% of 1331
companies
in the Chemicals industry
Industry Median: 5.58
vs SHECF: 9.61
Shin-Etsu Chemical Co 5-Year RORE % Historical Data
The historical data trend for Shin-Etsu Chemical Co'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.
Competitive Comparison of Shin-Etsu Chemical Co's 5-Year RORE %
For the Chemicals subindustry, Shin-Etsu Chemical Co'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.
Shin-Etsu Chemical Co's 5-Year RORE % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical Co's 5-Year RORE % falls into.
Shin-Etsu Chemical Co 5-Year RORE % Calculation
Shin-Etsu Chemical Co's 5-Year RORE % for the quarter that ended in Dec. 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 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.
Shin-Etsu Chemical Co (OTCPK:SHECF) 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.
Shin-Etsu Chemical Co 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of Shin-Etsu Chemical Co's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Business Description
Shin-Etsu Chemical Co Ltd is a Japan-based company primarily engaged in chemical business. The company operates in six business segments namely Poly Vinyl Chloride, Specialty Chemicals, Silicon, Semiconductor Silicon, Electronic and Functional Materials and Diversified business. It derives majority of revenue through Poly Vinyl Chloride segment which manufactures and sells vinyl chloride, caustic soda products, chloromethane and methanol. The group is also involved in manufacturing and selling of various other chemical products such as Polyvinyl alcohol, Synthetic pheromones, Rare-earth magnets for electronics industry and general applications, Photoresists, Photomask blanks and others. Geographically, it operates from the market of Japan and its business is amplifying across the globe.
Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Headlines
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