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Stock impact report

Olympic Steel (NASDAQ:ZEUS) Is Looking To Continue Growing Its Returns On Capital [Yahoo! Finance]

Olympic Steel, Inc. (ZEUS) 
Last olympic steel, inc. earnings: 5/1 06:30 am Check Earnings Report
US:NASDAQ Investor Relations: olysteel.com/contact
Company Research Source: Yahoo! Finance
Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's 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 Olympic Steel NASDAQ:ZEUS ) so let's look a bit deeper. Return On Capital Employed (ROCE): What Is It? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Olympic Steel, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.067 = US$56m ÷ (US$1.0b - US$177m) (Based on the trailing twelve months to September 2024) Thus, Olympic Steel has an ROCE of 6.7%. Ultimately, that's a low return Show less Read more
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