Returns On Capital Are Showing Encouraging Signs At Smith-Midland (NASDAQ:SMID) - Simply Wall St

Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed.

Understanding Return On Capital Employed (ROCE)If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

So we're very much inspired by what we're seeing at Smith-Midland thanks to its ability to profitably reinvest capital.

In Conclusion...To sum it up, Smith-Midland has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific.

Smith-Midland does have some risks though, and we've spotted that you might be interested in.

Published On: Tue, 30 Mar 2021 16:28:07 GMT