Hi all, new here :)
Does anyone know how (or if it's possible) to build a screening rule to try and find RORE, which is calculated as:
(Most Recent EPS – First Period EPS) / (Cumulative EPS for Period – Cumulative Dividends Paid for Period)
or perhaps another way:
(Earnings Increase for the past n years) / (Retained Earnings Accumulated for the past n-1 years)
I assume this cannot be done and wanted to confirm that and ask if anyone that has found a clever way to test management's skills at allocating capital of retained earnings (equity capital generated by operations to be reinvested/redeployed) which normally involves the following choices throughout their decision-making: 1) Investment in existing businesses; 2) Acquisition; 3) Share buyback; 4) Paydown debt; 5) Paying out as dividends.
