We like S&D'S (Kosdaq: 260970) returns and so trends them

There are some important trends that we have to look for if we want to identify the next multi-excavator. Among other things, we want to see two things; First, growth return on Capital (Roce) and secondly an expansion of the company of the company Crowd employed by capital. If you see this, this usually means a company with a great business model and much profitable reinvestment opportunities. So when we looked at the Roce trend S&D (Kosdaq: 260970) We really liked what we saw.

Understand capital return (Roce)

If you have not yet worked with Roce, it measures the “return” (input tax gain), which generates a company from capital that is employed in his business. To calculate this metric for S&D, this is the formula:

Capital returns employed = profits before interest and taxes (EBIT) ÷ (total assets – current liabilities)

0.28 = ₩ 18b ÷ (₩ 83b – ₩ 20b) (Based on the following twelve months to September 2024).

Therefore, S&D has a Roce of 28%. In absolute terms, this is a great return and it is even better than the average of the chemical industry of 7.5%.

Take a look at our latest analysis for S&D

In the table above we measured S&DS earlier Roce against its previous performance, but the future is probably more important. If you are interested, you can do the analyst forecasts in our ads free Analyst report for S&D.

What does the Roce trend tell us for S&D?

S&D shows some positive trends. The data show that the capital returns have increased significantly to 28%in the past five years. The company effectively earns more money per US dollar that has used capital, and it is worth noting that the capital amount has also increased by 110%. This can indicate that there are numerous ways to invest capital internally and ever higher, a combination that is common for multi-excavators.

What we can learn from S&D'S Roce

All in all, it is great to see that S&D uses the rewards of previous investments and expand its capital base. And a remarkable return of 601% in the past five years tells us that investors are expecting more good things in the future. In view of the stock, she has proven that she has promising trends, it is worth investigating whether these trends will probably remain.

One more thing, we saw 1 warning sign Given the S&D, which you may find interesting.

S&D is not the only share that achieves high returns. If you want to see more, look at ours free List of companies that achieve high equity returns with solid foundations.

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This article by Simply Wall Street is a general nature. We offer comments based on historical data and analyst forecasts that only use an impartial methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We would like to use a long -term focused analysis by basic data. Note that our analysis may not take into account the latest record -sensitive announcements or qualitative material. Simply Wall Street has no position in the stocks mentioned.