Infrastructure and Energy Insights: Return On Capital Employed

During Q1, Infrastructure and Energy IEA brought in sales totaling $276.41 million. However, earnings decreased 150.43%, resulting in a loss of $8.30 million. Infrastructure and Energy earned $16.47 million, and sales totaled $391.91 million in Q4.

What Is ROCE?

Changes in earnings and sales indicate shifts in Infrastructure and Energy'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, Infrastructure and Energy posted an ROCE of 0.09%.

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 Infrastructure and Energy's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q1 Earnings Recap

Infrastructure and Energy reported Q1 earnings per share at $-0.91/share, which did not meet analyst predictions of $-0.81/share.

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