Looking Into ATI Physical Therapy's Return On Capital Employed
Portfolio Pulse from Benzinga Insights
ATI Physical Therapy (NYSE:ATIP) reported Q1 sales of $166.93 million and a loss of $25.21 million despite a 75.38% increase in earnings. The company posted a negative Return on Capital Employed (ROCE) of -0.16%, suggesting inefficient capital allocation.
May 23, 2023 | 2:58 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
ATI Physical Therapy's Q1 sales reached $166.93 million, but the company posted a loss of $25.21 million and a negative ROCE of -0.16%, indicating inefficient capital allocation.
ATI Physical Therapy's negative ROCE of -0.16% indicates that the company is not effectively allocating its capital, which can negatively impact its stock price in the short term. The loss of $25.21 million despite increased earnings also raises concerns about the company's financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100