Benzinga Pro data, Syros Pharmaceuticals (NASDAQ:SYRS) reported Q2 sales of $5.16 million. Earnings fell to a loss of $26.14 million, resulting in a 24.85% decrease from last quarter. In Q1, Syros Pharmaceuticals brought in $4.83 million in sales but lost $20.94 million in earnings.

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 Q2, Syros Pharmaceuticals posted an ROCE of -0.2%.

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.

For Syros Pharmaceuticals, a negative ROCE ratio of -0.2% suggests that management may not be effectively allocating their capital.Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Upcoming Earnings Estimate

Syros Pharmaceuticals reported Q2 earnings per share at $-0.36/share, which beat analyst predictions of $-0.37/share.