Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)Ġ.06 = US$12m ÷ (US$224m - US$18m) (Based on the trailing twelve months to March 2023). Analysts use this formula to calculate it for Globus Maritime: If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Return On Capital Employed (ROCE): What Is It? With that in mind, we've noticed some promising trends at Globus Maritime ( NASDAQ:GLBS) so let's look a bit deeper. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed.
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