Hydrofarm Holdings Group's Return On Capital Employed Overview
Hydrofarm Holdings Group's Return On Capital Employed Overview
Hydrofarm Holdings Group (NASDAQ:HYFM) brought in sales totaling $61.46 million during Q4 according to data provided by Benzinga Pro. However, earnings decreased 49.83%, resulting in a loss of $35.27 million. Hydrofarm Holdings Group collected $74.16 million in revenue during Q3, but reported earnings showed a $23.54 million loss.
What Is ROCE?
Earnings data without context is not clear and can be difficult to base trading decisions on. Return on Capital Employed (ROCE) helps to filter signal from noise by measuring yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, Hydrofarm Holdings Group posted an ROCE of -0.1%.
It is important to keep in mind that ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.
ROCE is a powerful metric for comparing the effectiveness of capital allocation for similar companies. A relatively high ROCE shows Hydrofarm Holdings Group is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.
For Hydrofarm Holdings Group, a negative ROCE ratio of -0.1% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.
Upcoming Earnings Estimate
Hydrofarm Holdings Group reported Q4 earnings per share at $-0.45/share, which did not meet analyst predictions of $-0.45/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Hydrofarm Holdings Group (NASDAQ:HYFM) brought in sales totaling $61.46 million during Q4 according to data provided by Benzinga Pro. However, earnings decreased 49.83%, resulting in a loss of $35.27 million. Hydrofarm Holdings Group collected $74.16 million in revenue during Q3, but reported earnings showed a $23.54 million loss.
水農控股集團 （納斯達克：HYFM）根據本辛加 Pro 提供的數據，在第四季度期間帶來了總銷售額 61.46 萬美元。但是，收益下降 49.83％，導致損失 35.27 萬美元。水農控股集團在第三季度收入 7,416 萬美元，但報告的收益顯示虧損 23.54 億美元。
What Is ROCE?
什麼是強制性行為？
Earnings data without context is not clear and can be difficult to base trading decisions on. Return on Capital Employed (ROCE) helps to filter signal from noise by measuring yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, Hydrofarm Holdings Group posted an ROCE of -0.1%.
沒有上下文的盈利數據並不清楚，可能很難基於交易決策。利用資本回報率 (ROCE) 透過測量與企業僱用的資本相關的年度稅前利潤，有助於過濾噪音中的訊號。一般來說，較高的 ROCE 表明公司的成功增長，並且是未來每股收益較高的標誌。 在第四季度，水農控股集團發布了 -0.1% 的投資回報率。
It is important to keep in mind that ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.
重要的是要記住，ROCE 評估過去的績效，並且不被用作預測工具。這是衡量公司近期業績的一個很好的衡量標準，但不考慮可能影響收益和銷售在不久的將來的因素。
ROCE is a powerful metric for comparing the effectiveness of capital allocation for similar companies. A relatively high ROCE shows Hydrofarm Holdings Group is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.
ROCE 是一個有力的指標，用於比較同類公司的資本分配的有效性。相對較高的 ROCE 表明，水農控股集團的運營效率可能比其行業中的其他公司更高。如果公司以目前的資本水平產生高額利潤，那麼其中一些資金可以再投資於更多的資本，這通常會導致更高的回報，並最終導致每股收益（EPS）增長。
For Hydrofarm Holdings Group, a negative ROCE ratio of -0.1% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.
對於水農控股集團而言，負 ROCE 比率為 -0.1%，表明管理層可能無法有效地分配資本。有效的資本分配是一個積極的指標，一個公司將取得更持久的成功和有利的長期回報; 不良的資本分配可能會隨著時間的推移對公司的業績產生水蛭。
Upcoming Earnings Estimate
即將推出的盈利
Hydrofarm Holdings Group reported Q4 earnings per share at $-0.45/share, which did not meet analyst predictions of $-0.45/share.
水農控股集團報告第四季度每股盈利為 -0.45 美元/股，未符合分析師對 0.45 美元的預測。
This article was generated by Benzinga's automated content engine and reviewed by an editor.
本文由 Beninga 的自動化內容引擎生成，並由編輯審查。
譯文內容由第三人軟體翻譯。
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