U.S. markets open in 20 minutes
  • S&P Futures

    3,846.75
    +18.75 (+0.49%)
     
  • Dow Futures

    31,362.00
    -9.00 (-0.03%)
     
  • Nasdaq Futures

    12,968.25
    +136.50 (+1.06%)
     
  • Russell 2000 Futures

    2,205.00
    +5.00 (+0.23%)
     
  • Crude Oil

    62.56
    -0.97 (-1.53%)
     
  • Gold

    1,761.10
    -14.30 (-0.81%)
     
  • Silver

    26.92
    -0.76 (-2.75%)
     
  • EUR/USD

    1.2130
    -0.0056 (-0.46%)
     
  • 10-Yr Bond

    1.4670
    -0.0510 (-3.36%)
     
  • Vix

    28.04
    +6.70 (+31.40%)
     
  • GBP/USD

    1.3970
    -0.0042 (-0.30%)
     
  • USD/JPY

    106.3530
    +0.1230 (+0.12%)
     
  • BTC-USD

    46,315.79
    -5,371.96 (-10.39%)
     
  • CMC Crypto 200

    926.05
    -7.09 (-0.76%)
     
  • FTSE 100

    6,538.09
    -113.87 (-1.71%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Looking Into Corbus Pharmaceuticals's Return On Capital Employed

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Corbus Pharmaceuticals (NASDAQ: CRBP) reported Q3 sales of $1.23 million. Earnings fell to a loss of $33.97 million, resulting in a 10.92% decrease from last quarter. Corbus Pharmaceuticals collected $286.35 thousand in revenue during Q2, but reported earnings showed a $38.14 million loss.

Why ROCE Is Significant

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Corbus Pharmaceuticals posted an ROCE of -1.16%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

View more earnings on CRBP

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Corbus Pharmaceuticals is potentially operating 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 earnings per share growth.

For Corbus Pharmaceuticals, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.

Q3 Earnings Insight

Corbus Pharmaceuticals reported Q3 earnings per share at $-0.43/share, which did not meet analyst predictions of $-0.42/share.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.