#Rad industries free

What We Can Learn From Radici Pietro Industries & Brands' ROCE So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Radici Pietro Industries & Brands becoming one if things continue as they have. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last three years. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Unfortunately the returns on capital have diminished from the 5.3% that they were earning three years ago. We are a bit worried about the trend of returns on capital at Radici Pietro Industries & Brands.

#Rad industries free

If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company. In the above chart we have measured Radici Pietro Industries & Brands' prior ROCE against its prior performance, but the future is arguably more important. See our latest analysis for Radici Pietro Industries & Brands BIT:RAD Return on Capital Employed February 25th 2022 In absolute terms, that's a low return and it also under-performs the Consumer Durables industry average of 13%. Thus, Radici Pietro Industries & Brands has an ROCE of 0.9%. Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)Ġ.0092 = €414k ÷ (€72m - €27m) (Based on the trailing twelve months to June 2021). To calculate this metric for Radici Pietro Industries & Brands, this is the formula: Return On Capital Employed (ROCE): What is it?įor those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. So after glancing at the trends within Radici Pietro Industries & Brands ( BIT:RAD), we weren't too hopeful. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop up? A business that's potentially in decline often shows two trends, a return on capital employed (ROCE) that's declining, and a base of capital employed that's also declining.