ROCE Insights For APi Gr

APi Gr APG reported Q1 sales of $803.00 million. Earnings fell to a loss of $2.00 million, resulting in a 90.48% decrease from last quarter. APi Gr collected $882.00 million in revenue during Q4, but reported earnings showed a $21.00 million loss.

What Is Return On Capital Employed?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q1, APi Gr posted an ROCE of -0.0%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or 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.

For APi Gr, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.

Q1 Earnings Insight

APi Gr reported Q1 earnings per share at $0.12/share, which did not meet analyst predictions of $0.14/share.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsBZI-ROCE
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...