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.
Anavex Life Sciences's 5-Year RORE % for the quarter that ended in Dec. 2023 was 1.48%.
The industry rank for Anavex Life Sciences's 5-Year RORE % or its related term are showing as below:
AVXL's 5-Year RORE % is ranked better than 61.71% of 1055
companies
in the Biotechnology industry
Industry Median: -7.26
vs AVXL: 1.48
Anavex Life Sciences 5-Year RORE % Historical Data
The historical data trend for Anavex Life Sciences'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 Anavex Life Sciences's 5-Year RORE %
For the Biotechnology subindustry, Anavex Life Sciences'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.
Anavex Life Sciences's 5-Year RORE % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Anavex Life Sciences's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Anavex Life Sciences's 5-Year RORE % falls into.
Anavex Life Sciences 5-Year RORE % Calculation
Anavex Life Sciences'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.
Anavex Life Sciences (NAS:AVXL) 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.
Anavex Life Sciences 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of Anavex Life Sciences's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Anavex Life Sciences (Anavex Life Sciences) Business Description
Anavex Life Sciences Corp is a clinical-stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system diseases with high unmet need. It analyzes genomic data from clinical studies to identify biomarkers, which are used to select patients that will receive the therapeutic benefit for the treatment of neurodegenerative and neurodevelopmental diseases. Its necessary compound ANAVEX 2-73 is being developed to treat Alzheimer's disease, Parkinson's disease, and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder. The company's operating segment is into developing novel therapies for the management of CNS diseases.
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