Market Overview

Return On Capital Employed Overview: Remark Holdings


In Q2, Remark Holdings (NASDAQ: MARK) posted sales of $2.30 million. Earnings were up 45.84%, but Remark Holdings still reported an overall loss of $2.84 million. In Q1, Remark Holdings brought in $431.00 thousand in sales but lost $1.95 million in earnings.

Why ROCE Is Significant

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 Q2, Remark Holdings posted an ROCE of 0.38%.

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.

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

Q2 Earnings Recap

Remark Holdings reported Q2 earnings per share at $-0.11/share, which did not meet analyst predictions of $-0.05/share.


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Posted-In: Earnings News Penny Stocks