According to Benzinga Pro, during Q2, Apollo Commercial Real (NYSE:ARI) earned $70.95 million, a 365.62% increase from the preceding quarter. Apollo Commercial Real also posted a total of $57.39 million in sales, a 4.07% increase since Q1. In Q1, Apollo Commercial Real earned $15.24 million, and total sales reached $55.14 million.

Why Is ROCE Significant?

Earnings data without context is not clear and can be difficult to base trading decisions on. Return on Capital Employed (ROCE) helps to filter signal from noise by measuring 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 Q2, Apollo Commercial Real posted an ROCE of 0.03%.

It is important to keep in mind that ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

For Apollo Commercial Real, the positive return on capital employed ratio of 0.03% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Apollo Commercial Real reported Q2 earnings per share at $0.35/share, which beat analyst predictions of $0.32/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.