Looking Into Delek Logistics Partners's Return On Capital Employed

Delek Logistics Partners DKL posted Q4 earnings of $45.10 million, an increase from Q3 of 12.87%. Sales dropped to $140.11 million, a 1.52% decrease between quarters. Delek Logistics Partners earned $51.77 million, and sales totaled $142.27 million in Q3.

What Is ROCE?

Changes in earnings and sales indicate shifts in Delek Logistics Partners's Return on Capital Employed, a measure of 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 Q4, Delek Logistics Partners posted an ROCE of -0.42%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and 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 Delek Logistics Partners's case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions.

Q4 Earnings Insight

Delek Logistics Partners reported Q4 earnings per share at $0.94/share, which did not meet analyst predictions of $1.13/share.