Return on Capital Employed Insights for Remark Holdings

After pulling data from Benzinga Pro it seems like during Q1, Remark Holdings MARK posted sales of $4.41 million. Earnings were up 30.72%, but Remark Holdings still reported an overall loss of $3.66 million. Remark Holdings collected $4.77 million in revenue during Q4, but reported earnings showed a $5.28 million loss.

What Is Return On Capital Employed?

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 Q1, Remark Holdings posted an ROCE of 0.27%.

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.

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Remark Holdings 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 Remark Holdings's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Analyst Predictions

Remark Holdings reported Q1 earnings per share at $-0.05/share, which did not meet analyst predictions of $-0.03/share.