Citra Nusa Holdings Returns Increasing
If you want a big return on your investment, look for two things in a company: increasing return on capital and more capital employed. This shows a good business model with room for growth. Citra Nusa Holdings Berhad looks good in terms of return on capital trends.
ROCE: Understanding Capital's Earnings?
ROCE shows a company's yearly pre-tax profit compared to its capital. Citra Nusa Holdings Berhad uses a calculation to find its ROCE.
ROCE or Return on Capital Employed is calculated by dividing EBIT (Earnings Before Interest and Tax) by Total Assets minus Current Liabilities.
In December 2022, the value of 0.02 equals RM1.4 million. This calculation is based on the most recent twelve months of data, up until December 2022. To arrive at this number, RM87 million was subtracted from RM16 million, and RM1.4 million was the resulting figure.
Citra Nusa Holdings Berhad has an ROCE of 2.0%, which is not good. The Retail Distributors industry average is 7.3%, and Citra Nusa is below that.
Take a look at our newest examination of Citra Nusa Holdings Berhad.
When you're looking for information on a stock, start by checking its historical performance. Citra Nusa Holdings Berhad's ROCE compared to previous returns is shown above. You can also look at the company's historical earnings, revenue, and cash flow by clicking on the free graphs provided.
ROCE Trending Upwards
The ROCE isn't the highest, but it's getting better. The capital employed stayed the same, but the ROCE went up by 543% in the last five years. This means the company is more efficient and making better returns without spending more money. The company is doing well and it's important to see what the management team has planned for future growth.
Citra Nusa Holdings Berhad is getting better at making profits. They haven't used more money, but they are earning more before taxes and interest. The stock is cheaper than before because it has gone down 35% in five years. It could be a smart buy if the price is good and other things look good too. It's a good idea to investigate the company's value and future possibilities.
Citra Nusa Holdings Berhad has risks, like other companies. We found 2 warning signs you should know about.
If you're into investing in solid companies, then here's something for you. There's a free list of companies that have strong balance sheets and high returns on equity.
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Simply Wall St wrote this article as a general piece. We looked at historical data and expert predictions to provide our unbiased commentary. Our articles are not meant to give financial advice and we don't suggest you buy or sell any stocks based on our writings. Also, we do not consider your goals or financial position. Instead, we strive to offer fundamental data and long-term analysis. Keep in mind that our analysis doesn't always include news updates or qualitative information that affects stock prices. Lastly, Simply Wall St doesn't have any stake in the companies mentioned.
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