U.S. Markets close in 3 hrs 14 mins
  • S&P 500

    3,895.55
    -28.13 (-0.72%)
     
  • Dow 30

    31,144.72
    -345.35 (-1.10%)
     
  • Nasdaq

    11,412.04
    -6.12 (-0.05%)
     
  • Russell 2000

    1,786.87
    +12.02 (+0.68%)
     
  • Crude Oil

    110.00
    +0.41 (+0.37%)
     
  • Gold

    1,841.70
    +25.80 (+1.42%)
     
  • Silver

    21.86
    +0.32 (+1.49%)
     
  • EUR/USD

    1.0591
    +0.0125 (+1.1968%)
     
  • 10-Yr Bond

    2.8350
    -0.0510 (-1.77%)
     
  • Vix

    30.14
    -0.82 (-2.65%)
     
  • GBP/USD

    1.2493
    +0.0151 (+1.2231%)
     
  • USD/JPY

    127.5290
    -0.7680 (-0.5986%)
     
  • BTC-USD

    30,143.65
    +1,141.42 (+3.94%)
     
  • CMC Crypto 200

    671.35
    +19.12 (+2.93%)
     
  • FTSE 100

    7,302.74
    -135.35 (-1.82%)
     
  • Nikkei 225

    26,402.84
    -508.36 (-1.89%)
     

ROCE Insights For Charah Solutions

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

 

 

Charah Solutions (NYSE:CHRA) reported Q4 sales of $65.68 million. Earnings fell to a loss of $39.50 million, resulting in a 5093.43% decrease from last quarter. In Q3, Charah Solutions earned $791.00 thousand and total sales reached $118.72 million.

What Is ROCE?

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 Q4, Charah Solutions posted an ROCE of -0.83%.

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 CHRA

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 Charah Solutions'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.

Q4 Earnings Recap

Charah Solutions reported Q4 earnings per share at $-0.36/share, which did not meet analyst predictions of $0.09/share.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.