You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. The company engages in capital dredging that consists of port expansion projects coastal restoration and land reclamations trench digging for pipelines, tunnels, and cables and other dredging related to the construction of breakwaters, jetties, canals, and other marine structures. 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. Great Lakes Dredge & Dock Corporation provides dredging services in the United States. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. While Great Lakes Dredge & Dock isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for Great Lakes Dredge & Dock (of which 2 are a bit unpleasant!) that you should know about. Ultimately, that's a low return and it under-performs the Construction industry average of 8.1%.Ĭheck out our latest analysis for Great Lakes Dredge & Dock Thus, Great Lakes Dredge & Dock has an ROCE of 5.3%. Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)Ġ.053 = US$45m ÷ (US$1.0b - US$147m) (Based on the trailing twelve months to September 2022). To calculate this metric for Great Lakes Dredge & Dock, this is the formula: Understanding Return On Capital Employed (ROCE)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 on that note, Great Lakes Dredge & Dock ( NASDAQ:GLDD) looks quite promising in regards to its trends of return on capital. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics.
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