Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Speaking of which, we noticed some great changes in ATI's (NYSE:ATI) returns on capital, so let's have a look.
What Is Return On Capital Employed (ROCE)?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on ATI is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.096 = US$328m ÷ (US$4.2b - US$800m) (Based on the trailing twelve months to June 2022).
Therefore, ATI has an ROCE of 9.6%. Ultimately, that's a low return and it under-performs the Metals and Mining industry average of 18%.
See our latest analysis for ATI
NYSE:ATI Return on Capital Employed August 8th 2022
In the above chart we have measured ATI's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for ATI.
What Does the ROCE Trend For ATI Tell Us?
You'd find it hard not to be impressed with the ROCE trend at ATI. We found that the returns on capital employed over the last five years have risen by 225%. The company is now earning US$0.1 per dollar of capital employed. Speaking of capital employed, the company is actually utilizing 24% less than it was five years ago, which can be indicative of a business that's improving its efficiency. If this trend continues, the business might be getting more efficient but it's shrinking in terms of total assets.
The Bottom Line On ATI's ROCE
In summary, it's great to see that ATI has been able to turn things around and earn higher returns on lower amounts of capital. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 62% return over the last five years. In light of that, we think it's worth looking further into this stock because if ATI can keep these trends up, it could have a bright future ahead.
ATI does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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找到一家具有大幅增长潜力的企业并非易事,但如果我们看看几个关键的财务指标,这是可能的。在其他方面,我们希望看到两件事;第一,不断增长的退货一是关于已用资本(ROCE),二是公司的金额已动用资本的比例。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。说到这里,我们注意到了一些很大的变化ATI‘s(纽约证券交易所股票代码:ATI)的资本回报率,让我们来看看。
什么是资本回报率(ROCE)?
对于那些不知道的人来说,ROCE是一家公司的年度税前利润(其回报)相对于业务资本的衡量标准。ATI上的此计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.096美元=3.28亿美元(42亿-8亿美元)(根据截至2022年6月的往绩12个月计算).
所以呢,ATI的净资产收益率为9.6%。归根结底,这是一个较低的回报率,表现低于金属和矿业18%的平均水平。
查看我们对ATI的最新分析
纽约证券交易所:ATI 2022年8月8日的资本回报率
在上面的图表中,我们对比了ATI之前的ROCE和它之前的表现,但可以说,未来更重要。如果您想查看分析师对未来的预测,您应该查看我们的免费向ATI报到。
ATI的ROCE趋势告诉我们什么?
你会发现很难不对ATI的ROCE趋势印象深刻。我们发现,过去五年的资本回报率上升了225%。该公司现在每投入一美元资本就能赚取0.1美元。说到使用的资本,该公司实际使用的资本比五年前减少了24%,这可以表明企业正在提高效率。如果这种趋势继续下去,业务可能会变得更有效率,但总资产正在缩水。
ATI ROCE的底线
总而言之,很高兴看到ATI能够扭转局面,用更少的资本获得更高的回报。投资者似乎预计未来会出现更多这样的情况,因为过去五年,该股为股东带来了62%的回报。有鉴于此,我们认为值得进一步研究这只股票,因为如果ATI能够保持这些趋势,它可能会有一个光明的未来。
不过,我们发现,ATI确实带来了一些风险在我们的投资分析中出现了3个警告信号,其中一件让我们有点不舒服……
如果你想寻找收入丰厚的可靠公司,看看这个免费拥有良好资产负债表和可观股本回报率的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。