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Stock impact report

Some Investors May Be Worried About DoubleVerify Holdings' (NYSE:DV) Returns On Capital [Yahoo! Finance]

DoubleVerify Holdings, Inc. (DV) 
US:NYSE Investor Relations: investors.adtalem.com
Company Research Source: Yahoo! Finance
One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Having said that, from a first glance at DoubleVerify Holdings NYSE:DV ) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for DoubleVerify Holdings: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.07 = US$82m ÷ (US$1.3b - US$103m) (Based on the trailing twelve months to December 2024) Thus, DoubleVerify Holdings has an ROCE of 7.0%. In absolute terms, that's a low return and it also under- Show less Read more
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