ROCE Insights For Neonode Inc. - Common Stock

In Q1, Neonode Inc. - Common Stock NEON posted sales of $1.67 million. Earnings were up 1.81%, but Neonode Inc. - Common Stock still reported an overall loss of $1.63 million. In Q4, Neonode Inc. - Common Stock brought in $2.44 million in sales but lost $1.60 million in earnings.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in Neonode Inc. - Common Stock'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 Q1, Neonode Inc. - Common Stock posted an ROCE of -0.16%.

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.

In Neonode Inc. - Common Stock'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.

Q1 Earnings Insight

Neonode Inc. - Common Stock reported Q1 earnings per share at $-0.14/share, which did not meet analyst predictions of $-0.12/share.