Sbc Medical(Sbc) Financials: Return On Capital Employed Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on capital employed
This chart shows the historical trend of return on capital employed for SBC compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Capital Employed (ROCE)
Definition: ROCE looks at how effectively the company uses all long-term capital — both debt and equity — to generate profits. It’s a good way to compare companies with different financing structures. Higher ROCE means the company makes good returns on every dollar invested in its business operations.
Interpretation:
• In '2022', SBC's return on capital employed was 19.1%, indicating returns achieved on invested capital. Industry average for Medical/Nursing Services in '2022' stood at 54.8%.
• In '2023', SBC's return on capital employed was 44.3%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2023' stood at -0.1%. Industry average declined by 54.9% from previous year.
• In '2024', SBC's return on capital employed was 35.9%, indicating returns achieved on invested capital. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at 27.1%. Industry average increased by 27.3% compared to previous year.
Overall, SBC's return on capital employed has been volatile but showed an upward trend over the past 3 years.
Formula: ROCE = EBIT / (Total Assets - Current Liabilities)
Good Range: Often 8%-20%.