Fluor Earnings Perspective: Return On Capital Employed
Portfolio Pulse from Benzinga Insights
Fluor (NYSE:FLR) reported Q1 sales of $3.75 billion, but earnings decreased 306.25%, resulting in a loss of $130 million. The company posted a negative Return on Capital Employed (ROCE) of -0.07%, suggesting inefficient capital allocation.
May 19, 2023 | 2:50 pm
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Fluor's Q1 sales totaled $3.75 billion, but earnings decreased 306.25%, resulting in a $130 million loss. The company's negative ROCE of -0.07% suggests inefficient capital allocation.
Fluor's significant decrease in earnings and negative ROCE indicate that the company is not efficiently allocating its capital. This could negatively impact the stock price in the short term as investors may perceive the company as less profitable and less efficient compared to its industry peers.
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