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Brookfield Business (TSX:BBUC) 3-Year RORE % : 51.54% (As of Mar. 2024)


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What is Brookfield Business 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. Brookfield Business's 3-Year RORE % for the quarter that ended in Mar. 2024 was 51.54%.

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

TSX:BBUC's 3-Year RORE % is ranked better than
73.89% of 1536 companies
in the Asset Management industry
Industry Median: -0.945 vs TSX:BBUC: 51.54

Brookfield Business 3-Year RORE % Historical Data

The historical data trend for Brookfield Business'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.

Brookfield Business 3-Year RORE % Chart

Brookfield Business Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year RORE %
Get a 7-Day Free Trial - - - 102.29 34.32

Brookfield Business Quarterly Data
Dec18 Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 122.94 32.49 26.67 34.32 51.54

Competitive Comparison of Brookfield Business's 3-Year RORE %

For the Asset Management subindustry, Brookfield Business'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.


Brookfield Business's 3-Year RORE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield Business's 3-Year RORE % distribution charts can be found below:

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



Brookfield Business 3-Year RORE % Calculation

Brookfield Business's 3-Year RORE % for the quarter that ended in Mar. 2024 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 )
=( 9.332--2.402 )/( 23.439-0.671 )
=11.734/22.768
=51.54 %

* 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 Mar. 2024 and 3-year before.


Brookfield Business  (TSX:BBUC) 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.


Brookfield Business 3-Year RORE % Related Terms

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Brookfield Business (TSX:BBUC) Business Description

Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 1500, P.O. Box 11117, Vancouver, BC, CAN, V6E 4N7
Brookfield Business Corp is a company established as a vehicle that owns and operates certain services and industrial operations on a global basis and an alternative vehicle for investors who prefer investing in its operations through a corporate structure. Its goal is to generate returns through long-term capital appreciation with a modest distribution yield.

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