Looking Into Cherry Hill Mortgage's Return On Capital Employed
Portfolio Pulse from Benzinga Insights
Cherry Hill Mortgage (NYSE:CHMI) reported Q1 sales of -$160 thousand and a loss of $19.32 million, despite a 41.01% increase in earnings. The company posted a negative Return on Capital Employed (ROCE) of -0.07%, suggesting inefficient capital allocation.
May 23, 2023 | 2:58 pm
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NEGATIVE IMPACT
Cherry Hill Mortgage's Q1 results show a loss of $19.32 million and a negative ROCE of -0.07%, indicating potential inefficiency in capital allocation.
Cherry Hill Mortgage's negative ROCE of -0.07% in Q1 indicates that the company may not be effectively allocating its capital. This could negatively impact the company's stock price in the short term, as investors may perceive the company as less efficient and less likely to achieve favorable long-term returns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100