Adtalem Global Education Inc. (ATGE) Common Stock – Adtalem Global Education Return on Capital Employed Review

According to Benzinga Pro, during the fourth trimester, Adtalem Global Education ATGE earned $8.01 million, an increase of 97.71% over the previous quarter. Adtalem Global Education sales decreased to $361.23 million, a 1.2% change from the third quarter. Adtalem Global Education earned $349.84 million and sales totaled $365.62 million in the third quarter.

What is return on capital employed?

Profit data without context is unclear and can be difficult to base trading decisions on. Return on Capital Employed (ROCE) helps filter out the signal from the noise by measuring annual pre-tax profit against the capital employed by a company. Generally, a higher ROCE suggests successful growth of a business and is a sign of higher earnings per share in the future. In the fourth quarter, Adtalem Global Education posted a ROCE of 0.01%.

It is important to keep in mind that ROCE assesses past performance and is not used as a predictive tool. It’s a good measure of a company’s recent performance, but it doesn’t take into account factors that may affect profits and sales in the near future.

ROCE is a powerful metric for comparing the efficiency of capital allocation for similar companies. A relatively high ROCE shows that Adtalem Global Education potentially operates at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital, which will generally lead to higher returns and ultimately growth in earnings per share ( EPS).

For Adtalem Global Education, the positive return on capital employed ratio of 0.01% suggests that management is allocating its capital efficiently. Efficient capital allocation is a positive indicator that a business will achieve more sustainable success and favorable long-term returns.

Estimated future income

Adtalem Global Education reported fourth-quarter earnings per share of $1.31/share, beating analysts’ forecast of $1.25/share.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.