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.
Why Is ROCE Important? Return on Capital Employed (ROCE) is a measure of a company’s annual pre-tax profit in relation to its capital employed. 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. Lakeland Industries had a ROCE of 0.05 percent in the first 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. 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 return on capital employed ratio for Lakeland Industries illustrates that having more assets can actually help the company generate higher returns, which is something investors will consider when evaluating the payout from long-term financing plans.
Insights into Q1 Earnings
Lakeland Industries reported $0.57 earnings per share in the first quarter, above analyst expectations of $0.53./n
