Aethlon Medical (NASDAQ:AEMD) made $34.23 thousand in revenue in the fourth quarter. Earnings, on the other hand, fell 7.33 percent, resulting in a $2.26 million loss. Aethlon Medical made $624.87 thousand in revenue in the third quarter, but recorded a $2.44 million loss.
What is the definition of Return On Capital Employed (ROCE)?
Return on Capital Employed (ROCE) is a metric that compares a company’s annual pre-tax profit to the capital it has invested. Earnings and sales fluctuations imply changes in a company’s ROCE. A higher ROCE is indicative of a company’s successful growth and, as a result, of better earnings per share in the future. A low or negative ROCE indicates the inverse. Aethlon Medical had a ROCE of -0.24 percent in the fourth quarter.
Keep in mind that, while ROCE is a solid indicator of a company’s previous performance, it isn’t a very good prediction of earnings or sales in the near future.
The Return on Capital Employed (ROCE) is an important indicator for comparing similar businesses. Aethlon Medical has a reasonably high ROCE, indicating that it may be more efficient than other companies in its industry. If the company is making a lot of money with its current capital, some of it can be reinvested in greater capital, resulting in stronger returns and higher earnings per share growth.
In the instance of Aethlon Medical, the ROCE ratio indicates that the company’s assets may not be assisting it in achieving higher returns. Before making any long-term financial decisions, investors should consider this.
Recap of Q4 Earnings
Aethlon Medical announced $-0.15 earnings per share in the fourth quarter, beating analyst expectations of $-0.2./n
