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.
Quest Diagnostics's 3-Year RORE % for the quarter that ended in Mar. 2024 was -35.90%.
The industry rank for Quest Diagnostics's 3-Year RORE % or its related term are showing as below:
DGX's 3-Year RORE % is ranked worse than 74.76% of 210
companies
in the Medical Diagnostics & Research industry
Industry Median: -7.215
vs DGX: -35.90
Quest Diagnostics 3-Year RORE % Historical Data
The historical data trend for Quest Diagnostics'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.
Competitive Comparison of Quest Diagnostics's 3-Year RORE %
For the Diagnostics & Research subindustry, Quest Diagnostics'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.
Quest Diagnostics's 3-Year RORE % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Quest Diagnostics's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Quest Diagnostics's 3-Year RORE % falls into.
Quest Diagnostics 3-Year RORE % Calculation
Quest Diagnostics's 3-Year RORE % for the quarter that ended in Mar. 2024 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 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.
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.
Quest Diagnostics 3-Year RORE % Related Terms
Thank you for viewing the detailed overview of Quest Diagnostics's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Quest Diagnostics (Quest Diagnostics) Business Description
Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.
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