Jiangsu Yoke Technology (SZSE:002409) is a business that has shown positive trends in its return on capital employed (ROCE), indicating potential for substantial growth. ROCE is a metric that evaluates how much pre-tax income a company earns on the capital invested in its business. Jiangsu Yoke Technology has an ROCE of 10%, compared to the industry average of 5.5%, indicating a strong performance.
Over the last five years, Jiangsu Yoke Technology has seen significant growth in its returns on capital, as well as an increase in the amount of capital employed. This suggests that the company is reinvesting its earnings at higher rates of return, positioning it as a compounding machine with opportunities for future growth.
While there has been an increase in the company’s current liabilities, indicating a higher reliance on suppliers and short-term creditors, the overall trend of increasing returns on capital and capital employed is positive. Investors have recognized these changes, with the stock returning 116% to shareholders over the last five years.
It is worth noting that there are risks associated with investing in Jiangsu Yoke Technology, but the company’s positive trends in ROCE make it an attractive prospect for potential growth. As investors continue to monitor these trends, there is optimism for a bright future ahead for Jiangsu Yoke Technology.
Source
Photo credit simplywall.st
