Finding a business with significant growth potential is not easy, but it can be done by looking at a few key financial metrics. One common approach is to Return value In connection with increasing capital employed (ROCE), amount of capital used. Essentially, this means that companies have profitable initiatives that they can continue to reinvest. This is a feature of the compound interest calculator. With that in mind, ROCE debok industry (NSE:DIL) It looks good, so let’s see what the trends tell us.
Understanding Return on Capital Employed (ROCE)
If you haven’t used ROCE before, ROCE measures the “earnings” (earnings before tax) that a company makes on the capital it uses in its business. The formula for this at Debock Industries is:
Return on Capital Employed = Earnings Before Interest and Taxes (EBIT) ÷ (Total Assets – Current Liabilities)
0.44 = ₹379m ÷ (₹1.1b – ₹287m) (Based on the last 12 months to December 2022).
So, Debock Industries’ ROCE is 44%. That’s an impressive return, and not only that, it beats the 16% average earned by companies in similar industries.
See the latest analysis from Debock Industries
Historical performance is a great place to start when researching stocks, so you can see a gauge of Debock Industries’ ROCE against previous returns, as shown above. If you would like to see how Debock Industries has performed in the past on other metrics, please visit here. free Graphs of historical earnings, earnings and cash flow.
What can Debock Industries’ ROCE trends tell us?
Investors will be happy with what’s happening at Debock Industries. The figures show that over the past five years, the revenue generated from the capital used has increased significantly to 44% of his. It is worth noting that the company has effectively increased its profit per dollar of capital used, and the amount of capital he has also increased by 268%. So I am very inspired by what I see at Debock Industries because of their ability to turn a profit and reinvest their capital.
A company that can consistently invest in itself with a high return on capital is a very popular trait and that is what Debock Industries is all about. And an astounding 400% total return over the past three years shows investors expect even better things to come in the future. So I think it’s worth taking some time to see if these trends continue.
Finally, you should learn about: three warning signs I’ve found Debock Industries (including two that are slightly disturbing).
High returns are a key component of strong performance. free A list of stocks with strong balance sheets and strong returns on equity.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …