Overview of Return on Capital Employed Class A Common Stock of Digital Media Solutions, Inc.
Benzinga Pro Data, Digital Media Solutions, Inc. Class A Common Stock SGD reported first-quarter sales of $109.11 million. Profit fell to a loss of $5.36 million, resulting in a 36.38% decline from last quarter. Class A common stock of Digital Media Solutions, Inc. generated revenue of $118.95 million during the fourth quarter, but reported earnings showed a loss of $3.93 million.
Why is ROCE important?
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 first quarter, Class A common stock of Digital Media Solutions, Inc. posted a ROCE of 0.11%.
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 the Class A common stock of Digital Media Solutions, Inc. 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 Class A common stock of Digital Media Solutions, Inc., the positive return on capital employed ratio of 0.11% 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
Class A common stock of Digital Media Solutions, Inc. posted first-quarter earnings per share of $0.0/share, beating analysts’ forecasts of -$0.05/share.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.