Beyond Air Insights: Return On Capital Employed

During Q4, Beyond Air XAIR brought in sales totaling $145.63 thousand. However, earnings decreased 10.37%, resulting in a loss of $5.03 million. In Q3, Beyond Air brought in $148.79 thousand in sales but lost $5.62 million in earnings.

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in Beyond Air'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, Beyond Air posted an ROCE of -0.17%.

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.

For Beyond Air, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.

Q4 Earnings Recap

Beyond Air reported Q4 earnings per share at $-0.24/share, which beat analyst predictions of $-0.31/share.