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Stock impact report

PG&E (NYSE:PCG) Shareholders Will Want The ROCE Trajectory To Continue [Yahoo! Finance]

Pacific Gas & Electric Co. (PCG) 
Last pacific gas & electric co. earnings: 5/1 08:21 am Check Earnings Report
US:NYSE Investor Relations: finance.yahoo.com/quote/pg
Company Research Source: Yahoo! Finance
Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. With that in mind, we've noticed some promising trends at PG&E NYSE:PCG ) so let's look a bit deeper. Return On Capital Employed (ROCE): What Is It? 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 PG&E: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.044 = US$5.1b ÷ (US$134b - US$16b) (Based on the trailing twelve months to December 2024) Thus, PG&E has an ROCE of 4.4%. In absolute terms, that's a low return but it's around the Electric Utilities industry average of 4.9%. Check ou Show less Read more
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