Oxford Industries (NYSE:OXM) has lost $34.89 million in earnings since the fourth quarter. During the first quarter, sales climbed by 20.05 percent to $265.76 million. Oxford Industries made $221.37 million in revenue in the fourth quarter, but recorded a $16.62 million loss.
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. Oxford Industries had a ROCE of 0.08 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. Oxford 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.
In the case of Oxford Industries, the positive ROCE ratio will be a factor to consider when making long-term financial decisions.
Insights into Q1 Earnings
Oxford Industries announced $1.89 earnings per share in the first quarter, beating analyst expectations of $1.05 per share./n
