Vera Bradley (NASDAQ:VRA) made $109.09 million in revenue in the first quarter. Earnings, on the other hand, fell by 121.82 percent, resulting in a loss of $1.96 million. In the fourth quarter, Vera Bradley earned $8.98 million on sales of $142.37 million.
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. Vera Bradley had a -0.01% ROCE 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.
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 Vera Bradley 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
Vera Bradley reported $-0.05 earnings per share in the first quarter, above analyst expectations of $-0.23 per share./n
