U.S. markets closed
  • S&P 500

    3,768.47
    -51.25 (-1.34%)
     
  • Dow 30

    30,924.14
    -345.95 (-1.11%)
     
  • Nasdaq

    12,723.47
    -274.28 (-2.11%)
     
  • Russell 2000

    2,146.92
    -60.87 (-2.76%)
     
  • Crude Oil

    64.03
    +2.75 (+4.49%)
     
  • Gold

    1,694.90
    -20.90 (-1.22%)
     
  • Silver

    25.37
    -1.02 (-3.85%)
     
  • EUR/USD

    1.1982
    -0.0085 (-0.71%)
     
  • 10-Yr Bond

    1.5500
    +0.0800 (+5.44%)
     
  • GBP/USD

    1.3894
    -0.0059 (-0.42%)
     
  • USD/JPY

    107.9600
    +0.9580 (+0.90%)
     
  • BTC-USD

    48,083.12
    -2,640.97 (-5.21%)
     
  • CMC Crypto 200

    962.41
    -24.80 (-2.51%)
     
  • FTSE 100

    6,650.88
    -24.59 (-0.37%)
     
  • Nikkei 225

    28,930.11
    -628.99 (-2.13%)
     

Return On Capital Employed Overview: Amarin Corp

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

Amarin Corp (NASDAQ: AMRN) posted Q2 earnings of $4.16 million, an increase from Q1 of 117.3%. Sales dropped to $135.32 million, a 12.69% decrease between quarters. Amarin Corp collected $154.99 million in revenue during Q1, but reported earnings showed a $24.03 million loss.

What Is Return On Capital Employed?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed in a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth in a company and is a sign of higher earnings per share for shareholders in the future. A low or negative ROCE suggests the opposite. In Q2, Amarin Corp posted an ROCE of 0.01%.

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 AMRN

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In Amarin Corp's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q2 Earnings Recap

Amarin Corp reported Q2 earnings per share at $0.01/share, which beat analyst predictions of $-0.07/share.

See more from Benzinga

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