Looking Into OneSpaWorld Holdings Limited - Common Shares's Return On Capital Employed

During Q1, OneSpaWorld Holdings Limited - Common Shares (NASDAQ:OSW) brought in sales totaling $5.59 million. However, earnings decreased 24.63%, resulting in a loss of $18.89 million. In Q4, OneSpaWorld Holdings Limited - Common Shares brought in $3.83 million in sales but lost $25.07 million in earnings.

What Is ROCE?

Changes in earnings and sales indicate shifts in OneSpaWorld Holdings Limited - Common Shares's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, OneSpaWorld Holdings Limited - Common Shares posted an ROCE of -0.06%.

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 OneSpaWorld Holdings Limited - Common Shares's case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions.

Q1 Earnings Insight

OneSpaWorld Holdings Limited - Common Shares reported Q1 earnings per share at $-0.17/share, which beat analyst predictions of $-0.2/share.