Return on Capital Employed Overview: Manitex International

After pulling data from Benzinga Pro it seems like during Q2, Manitex International MNTX earned $2.57 million, a 831.52% increase from the preceding quarter. Manitex International also posted a total of $60.05 million in sales, a 27.3% increase since Q1. In Q1, Manitex International earned $276.00 thousand, and total sales reached $47.17 million.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in Manitex International'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 Q2, Manitex International posted an ROCE of 0.04%.

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.

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Manitex International is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth.

In Manitex International's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Analyst Predictions

Manitex International reported Q2 earnings per share at $0.11/share, which beat analyst predictions of $0.02/share.