U.S. Markets open in 8 hrs 33 mins
  • S&P Futures

    3,614.75
    -21.75 (-0.60%)
     
  • Dow Futures

    29,661.00
    -213.00 (-0.71%)
     
  • Nasdaq Futures

    12,226.25
    -31.25 (-0.25%)
     
  • Russell 2000 Futures

    1,837.50
    -15.50 (-0.84%)
     
  • Crude Oil

    44.86
    -0.67 (-1.47%)
     
  • Gold

    1,772.60
    -15.50 (-0.87%)
     
  • Silver

    22.17
    -0.46 (-2.05%)
     
  • EUR/USD

    1.1977
    +0.0007 (+0.0599%)
     
  • 10-Yr Bond

    0.8420
    0.0000 (0.00%)
     
  • Vix

    20.84
    -0.41 (-1.93%)
     
  • GBP/USD

    1.3342
    +0.0028 (+0.2095%)
     
  • USD/JPY

    103.8510
    -0.2340 (-0.2248%)
     
  • BTC-USD

    18,480.43
    -52.45 (-0.28%)
     
  • CMC Crypto 200

    364.18
    +26.68 (+7.91%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,489.14
    -155.57 (-0.58%)
     

ROCE Insights For Enviva Partners

Benzinga Insights
·1 min read

Enviva Partners (NYSE: EVA) posted Q2 earnings of $18.64 million, an increase from Q1 of 4.37%. Sales dropped to $167.71 million, a 17.98% decrease between quarters. In Q1, Enviva Partners earned $17.86 million, whereas sales reached $204.48 million.

What Is ROCE?

Changes in earnings and sales indicate shifts in Enviva Partners’s Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, Enviva Partners posted an ROCE of 0.05%.

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 EVA

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

Q2 Earnings Insight

Enviva Partners reported Q2 earnings per share at $0.26/share, which did not meet analyst predictions of $0.34/share.

See more from Benzinga

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