U.S. markets closed
  • S&P 500

    3,841.47
    -11.60 (-0.30%)
     
  • Dow 30

    30,996.98
    -179.03 (-0.57%)
     
  • Nasdaq

    13,543.06
    +12.15 (+0.09%)
     
  • Russell 2000

    2,168.76
    +27.34 (+1.28%)
     
  • Crude Oil

    51.98
    -1.15 (-2.16%)
     
  • Gold

    1,855.50
    -10.40 (-0.56%)
     
  • Silver

    25.57
    -0.29 (-1.12%)
     
  • EUR/USD

    1.2174
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    1.0910
    -0.0180 (-1.62%)
     
  • GBP/USD

    1.3684
    -0.0046 (-0.34%)
     
  • USD/JPY

    103.7700
    +0.2650 (+0.26%)
     
  • BTC-USD

    32,849.58
    +519.36 (+1.61%)
     
  • CMC Crypto 200

    651.44
    +41.45 (+6.79%)
     
  • FTSE 100

    6,695.07
    -20.35 (-0.30%)
     
  • Nikkei 225

    28,631.45
    -125.41 (-0.44%)
     

Return On Capital Employed Overview: Inovio Pharmaceuticals

Benzinga Insights
·2 min read

In Q3, Inovio Pharmaceuticals (NASDAQ: INO) posted sales of $236.18 million. Earnings were up 25.02%, but Inovio Pharmaceuticals still reported an overall loss of $36.33 million. In Q2, Inovio Pharmaceuticals brought in $267.19 thousand in sales but lost $29.06 million in earnings.

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in Inovio Pharmaceuticals’s Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q3, Inovio Pharmaceuticals posted an ROCE of -0.11%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

View more earnings on INO

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Inovio 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.

In Inovio Pharmaceuticals's case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions.

Q3 Earnings Recap

Inovio Pharmaceuticals reported Q3 earnings per share at $-0.26/share, which did not meet analyst predictions of $-0.19/share.

See more from Benzinga

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