Manitex International's Return On Capital Employed Overview - Manitex International (NASDAQ:MNTX)
Benzinga Pro data, Manitex International MNTX reported Q3 sales of $65.04 million. Earnings fell to a loss of $3.08 million, resulting in a 46.65% decrease from last quarter. Manitex International collected $69.58 million in revenue during Q2, but reported earnings showed a $2.10 million loss.
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 Q3, Manitex International posted an ROCE of -0.05%.
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 a powerful metric for comparing the effectiveness of capital allocation for 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, ultimately, earnings per share (EPS) growth.
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