Conn's's Return On Capital Employed Overview
Portfolio Pulse from Benzinga Insights
Conn's reported Q1 sales of $284.57 million and a loss of $35.38 million, with a return on capital employed (ROCE) of -0.08%. The negative ROCE suggests that management may not be effectively allocating their capital.
June 02, 2023 | 2:45 pm
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NEGATIVE IMPACT
Conn's reported a negative ROCE of -0.08% in Q1, suggesting potential inefficiency in capital allocation.
A negative ROCE indicates that the company may not be effectively allocating its capital, which can lead to poor performance and unfavorable long-term returns. This could negatively impact the stock price in the short term as investors may perceive the company as less efficient compared to its peers.
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IMPORTANCE 70
RELEVANCE 100