Return On Capital Employed Overview: Senseonics Holdings, Inc. Common Stock
Senseonics Holdings, Inc. Common Stock (AMEX:SENS) reported Q3 sales of $767.00 thousand. Earnings fell to a loss of $12.47 million, resulting in a 0.46% decrease from last quarter. Senseonics Holdings, Inc. Common Stock collected $261.00 thousand in revenue during Q2, but reported earnings showed a $12.53 million loss.
What Is Return On Capital Employed?
Changes in earnings and sales indicate shifts in Senseonics Holdings, Inc. Common Stock'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, Senseonics Holdings, Inc. Common Stock posted an ROCE of 0.24%.
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.
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.
For Senseonics Holdings, Inc. Common Stock, the return on capital employed ratio shows the number of assets can actually help the company achieve higher returns, an important note investors will take into account when gauging the payoff from long-term financing strategies.
Q3 Earnings Insight
Senseonics Holdings, Inc. Common Stock reported Q3 earnings per share at $-0.1/share, which did not meet analyst predictions of $-0.06/share.
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