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Stock impact report

There Are Reasons To Feel Uneasy About LCI Industries' (NYSE:LCII) Returns On Capital [Yahoo! Finance]

LCI Industries (LCII) 
Last lci industries earnings: 2/11 07:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Although, when we looked at LCI Industries NYSE:LCII ), it didn't seem to tick all of these boxes. Understanding Return On Capital Employed (ROCE) For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for LCI Industries: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.088 = US$218m ÷ (US$2.9b - US$412m) (Based on the trailing twelve months to December 2024) Therefore, LCI Industries has an ROCE of 8.8%. In absolute terms, that's a low return and it also under-performs the Auto Components industry average of 11%. View our latest analysis for LCI In Show less Read more
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