Oceaneering International (NYSE:OII) Shareholders Will Want The ROCE Trajectory To Continue

Simply Wall St.11-11

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its ...

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In a perfect world, we'd like to see a company investing more capital into its ...</p>\n\n<a href=\"https://finance.yahoo.com/news/oceaneering-international-nyse-oii-shareholders-100754165.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EBIT","symbol_name":"Harbor AlphaEdge Small Cap Earners ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/oceaneering-international-nyse-oii-shareholders-100754165.html","article_id":"2482209096","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/bdrdmnPRNBbldbP2ibp37w--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/92d26d55968bddf376addae5e476c381"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482209096","pubTimestamp":1731319674,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for?In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at Oceaneering International  and its trend of ROCE, we really liked what we saw.Return On Capital Employed : What Is It?If you haven't worked with ROCE before, it measures the 'return'  a company generates from capital employed in its business. The formula for this calculation on Oceaneering International is:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Above you can see how the current ROCE for Oceaneering International compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can v","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EBIT":"Harbor AlphaEdge Small Cap Earners ETF","OII":"国际海洋工程","NYSE":"纽交所","BK4179":"石油天然气设备与服务"},"translate_title":"Oceaneering International(NYSE：OII)股东希望ROCE轨迹继续下去","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"NYSE":1,"OII":1},"content_text":"If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at Oceaneering International (NYSE:OII) and its trend of ROCE, we really liked what we saw. \n Return On Capital Employed (ROCE): What Is It? \n If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Oceaneering International is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.14 = US$216m ÷ (US$2.4b - US$800m) (Based on the trailing twelve months to September 2024).\n So, Oceaneering International has an ROCE of 14%.  In absolute terms, that's a satisfactory return, but compared to the Energy Services industry average of 10% it's much better. \n See our latest analysis for Oceaneering International \n\n\n\n  NYSE:OII Return on Capital Employed November 11th 2024\n \n\n Above you can see how the current ROCE for Oceaneering International compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Oceaneering International . \n The Trend Of ROCE \n It's great to see that Oceaneering International has started to generate some pre-tax earnings from prior investments. While the business is profitable now, it used to be incurring losses on invested capital five years ago. In regards to capital employed, Oceaneering International is using 34% less capital than it was five years ago, which on the surface, can indicate that the business has become more efficient at generating these returns. This could potentially mean that the company is selling some of its assets. \n For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Essentially the business now has suppliers or short-term creditors funding about 34% of its operations, which isn't ideal. It's worth keeping an eye on this because as the percentage of current liabilities to total assets increases, some aspects of risk also increase. \n Our Take On Oceaneering International's ROCE \n From what we've seen above, Oceaneering International has managed to increase it's returns on capital all the while reducing it's capital base. Since the stock has returned a staggering 103% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue. \n If you want to continue researching Oceaneering International, you might be interested to know about the 1 warning sign that our analysis has discovered. \n For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482209096"}