Lakeland Industries (NASDAQ:LAKE) earned $6.24 million in the first quarter, up 32.61 percent from the previous quarter. Lakeland Industries’ revenue fell 7.61 percent to $34.09 million in the fourth quarter. Lakeland Industries made $9.26 million in the fourth quarter, with total sales of $36.90 million.
What is the definition of Return On Capital Employed (ROCE)?
Lakeland Industries’ 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. Lakeland Industries had a ROCE of 0.05 percent 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.
The Return on Capital Employed (ROCE) is an important indicator for comparing similar businesses. Lakeland Industries has a comparatively 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.
The positive ROCE ratio of Lakeland Industries will be something investors look at before making long-term financial decisions.
Insights into Q1 Earnings
Lakeland Industries reported $0.57 earnings per share in the first quarter, above analyst expectations of $0.53./n
