Looking Into Teva Pharmaceutical Indus's Return On Capital Employed


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


Looking at Q2, Teva Pharmaceutical Indus (NYSE:TEVA) earned $172.00 million, a 9.95% increase from the preceding quarter. Teva Pharmaceutical Indus's sales decreased to $3.87 billion, a 11.18% change since Q1. Teva Pharmaceutical Indus earned $191.00 million, and sales totaled $4.36 billion in Q1.

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in Teva Pharmaceutical Indus’s Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, Teva Pharmaceutical Indus posted an ROCE of 0.01%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In Teva Pharmaceutical Indus's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q2 Earnings Recap

Teva Pharmaceutical Indus reported Q2 earnings per share at $0.55/share, which beat analyst predictions of $0.53/share.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: EarningsNewsHealth CareGeneral