Return On Capital Employed Overview: B2Gold Corp Common shares (Canada)

Looking at Q2, B2Gold Corp Common shares BTG earned $37.19 million, a 33.83% increase from the preceding quarter. B2Gold  also posted a total of $441.94 million in sales, a 16.21% increase since Q1. B2Gold Corp Common shares (Canada) earned $27.79 million, and sales totaled $380.30 million in Q1.

Get Started

Earn 7.2% — No Matter What the Fed Does

Markets expect rate cuts — but your earnings don’t have to suffer. Lock in 7.2% until 2028 from ten individual bonds.

Get Started

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in B2Gold’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, B2Gold posted an ROCE of 0.03%.

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.

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows B2Gold is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will lead to higher returns and earnings per share growth.

For B2Gold, the return on capital employed ratio shows the number of assets can actually help the company achieve higher returns, an important note investors will take into account when gauging the payoff from long-term financing strategies.

Q2 Earnings Insight

B2Gold  reported Q2 earnings per share at $0.11/share, which beat analyst predictions of $0.02/share.