Can go abit higher!
Singapore Airlines' Returns On Capital Are Heading Higher
There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a proven return on capital employed that is increasing, and secondly, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. With that in mind, we've noticed some promising trends at Singapore Airlines so let's look a bit deeper.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 Singapore Airlines is:. Return on Capital Employed = Earnings Before Interest and Tax ÷ . So, Singapore Airlines has an ROCE of 7.0%. On its own, that's a low figure but it's around the 8.0% average generated by the Airlines industry.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Like
Report
Login to post
No comments yet