We were very interested in the trend of high returns at T&L (Kosdaq: 340570)

Did you know that there are some financial metrics that can offer indications of a potential 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. Simply put, these types of companies are compounding machines, which means that they are constantly investing their income. Speaking of which we have found some great changes T&L'S (Kosdaq: 340570) Capital returns, so let's take a look at.

Understand capital return (Roce)

For those who are not sure what Roce is, it measures the amount of profits from taxes that a company from the capital employed in his business can generate. The formula for this calculation of T&L reads:

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

0.28 = ₩ 47b ÷ (₩ 184b – ₩ 19b) (Based on the following twelve months to September 2024).

Therefore, T&L has a Roce of 28%. This is a fantastic return and not only that, it exceeds an average of 9.0% of companies in a similar industry.

Take a look at our latest analysis for T&L

Above you can see how the current Roce for T&L compares with its previous capital returns, but there is only so much that you can see from the past. If you are interested, you can do the analyst forecasts in our ads free Analyst report for T&L.

What does the Roce trend tell us for T&L?

T&L shows some positive trends. The numbers show that the returns that have been achieved on capital permits have increased significantly to 28%in the past five years. In principle, the company earns more invested capital in dollars, and 355% more capital is now also employed. This can indicate that there are numerous ways to invest capital internally and ever higher, a combination that is common for multi-excavators.

The end result

All in all, it is great to see that T&L uses the rewards of previous investments and expanded its capital base. And a remarkable return of 120% in the past three years tells us that investors are expecting more good things in the future. Therefore, we believe that it would be worth checking whether these trends are continued.

While T&L looks impressive, no company is worth an infinite price. The Intrinsic Value infographic for A340570 helps to visualize whether it is currently at a fair price.

If you want to see other companies that achieve high returns, read ours free List of companies that achieve high returns with solid balance sheets.

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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.