Return on Capital Employed Insights for Cross Country Healthcare

Pulled from Benzinga Pro data Cross Country Healthcare CCRN showed a loss in earnings since Q1, totaling $15.90 million. Sales, on the other hand, increased by 0.79% to $331.83 million during Q2. In Q1, Cross Country Healthcare earned $20.99 million and total sales reached $329.24 million.

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in Cross Country Healthcare'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, Cross Country Healthcare posted an ROCE of 0.08%.

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 Cross Country Healthcare 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.

For Cross Country Healthcare, the return on capital employed ratio shows the number of assets can actually help the company achieve higher returns, an important note investors will take into account when gauging the payoff from long-term financing strategies.

Analyst Predictions

Cross Country Healthcare reported Q2 earnings per share at $0.47/share, which beat analyst predictions of $0.4/share.