Return on Capital Employed Insights for SI-BONE

Pulled from Benzinga Pro data SI-BONE SIBN reported Q2 sales of $22.19 million. Earnings fell to a loss of $12.96 million, resulting in a 12.01% decrease from last quarter. In Q1, SI-BONE brought in $20.44 million in sales but lost $11.57 million in earnings.

What Is ROCE?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q2, SI-BONE posted an ROCE of -0.08%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or 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 SI-BONE'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.

Analyst Predictions

SI-BONE reported Q2 earnings per share at $-0.42/share, which did not meet analyst predictions of $-0.39/share.