U.S. markets open in 2 hours 46 minutes
  • S&P Futures

    4,280.00
    -27.75 (-0.64%)
     
  • Dow Futures

    33,960.00
    -158.00 (-0.46%)
     
  • Nasdaq Futures

    13,553.00
    -105.25 (-0.77%)
     
  • Russell 2000 Futures

    2,009.50
    -13.80 (-0.68%)
     
  • Crude Oil

    87.15
    +0.62 (+0.72%)
     
  • Gold

    1,787.30
    -2.40 (-0.13%)
     
  • Silver

    19.88
    -0.21 (-1.05%)
     
  • EUR/USD

    1.0170
    -0.0001 (-0.01%)
     
  • 10-Yr Bond

    2.8240
    0.0000 (0.00%)
     
  • Vix

    20.38
    +0.43 (+2.16%)
     
  • GBP/USD

    1.2101
    +0.0006 (+0.05%)
     
  • USD/JPY

    134.8400
    +0.6250 (+0.47%)
     
  • BTC-USD

    23,778.96
    -285.83 (-1.19%)
     
  • CMC Crypto 200

    566.80
    -5.12 (-0.90%)
     
  • FTSE 100

    7,506.98
    -29.08 (-0.39%)
     
  • Nikkei 225

    29,222.77
    +353.86 (+1.23%)
     

ROCE Insights For Amarin Corp

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • 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 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 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 Insight

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.