Accolade (NASDAQ:ACCD) had revenues of $59.53 million in the first quarter. Despite a 908.93 percent increase in earnings, Accolade nonetheless lost $48.02 million total. Accolade made $59.23 million in revenue in the fourth quarter, but reported a $4.76 million loss.
What is the definition of Return On Capital Employed (ROCE)?
Accolade’s Return on Capital Invested, a measure of yearly pre-tax profit relative to capital employed, has shifted as earnings and sales have changed. In general, a greater ROCE indicates that a company is growing successfully and that future earnings per share will be higher. Accolade had a -0.11% ROCE in the first quarter.
It’s vital to remember that ROCE assesses historical performance and isn’t intended to be used as a forecasting tool. It’s a strong indicator of a company’s previous performance, but various factors could have an immediate impact on earnings and sales.
Return on Capital Employed (ROCE) is a key indicator of efficiency and a useful metric for comparing businesses in the same industry. A high ROCE shows that a company is making profits that can be reinvested into new capital, resulting in higher returns and EPS growth for shareholders.
The return on capital employed ratio for Accolade indicates that the existing level of assets may not be assisting the company in achieving higher returns, which many investors may consider when making long-term financial decisions.
Insights into Q1 Earnings
Accolade reported $-0.66 profits per share in the first quarter, missing analyst expectations of $-0.37./n
