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.
水力农场控股集团 根据Benzinga Pro提供的数据，纳斯达克股票代码：HYFM）在第四季度实现了总额为6146万美元的销售额。但是，收益下降了49.83％，导致亏损3527万美元。Hydrofarm Holdings Group在第三季度获得了7,416万美元的收入，但公布的收益显示亏损了2354万美元。
What Is ROCE?
什么是 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%.
没有背景的收益数据不明确，可能很难做出交易决策。资本使用回报率（ROCE）通过衡量每年的税前利润与企业所用资本的关系，帮助过滤噪音中的信号。通常，更高的投资回报率表明公司成功发展，也表明未来每股收益更高。 在第四季度，Hydrofarm Holdings集团公布的投资回报率为-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.
重要的是要记住，ROCE 会评估过去的表现，而不是用作预测工具。这是衡量公司近期业绩的好方法，但没有考虑到可能在不久的将来影响收益和销售的因素。
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.
投资回报率是比较类似公司资本配置有效性的有力指标。相对较高的投资回报率表明Hydrofarm Holdings Group的运营效率可能高于该行业的其他公司。如果公司以目前的资本水平创造高额利润，则可以将其中一部分资金再投资于更多的资本，这通常会带来更高的回报，最终实现每股收益（EPS）的增长。
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.
对于Hydrofarm Holdings Group而言，负的投资回报率为-0.1％，表明管理层可能没有有效地配置资本。有效的资本配置是一个积极的指标，表明公司将取得更持久的成功和良好的长期回报；随着时间的推移，不良的资本配置可能会影响公司的业绩。
Upcoming Earnings Estimate
即将到来的收益估计
Hydrofarm Holdings Group reported Q4 earnings per share at $-0.45/share, which did not meet analyst predictions of $-0.45/share.
Hydrofarm Holdings Group公布的第四季度每股收益为-0.45美元，未达到分析师预测的每股-0.45美元。
This article was generated by Benzinga's automated content engine and reviewed by an editor.
本文由Benzinga的自动内容引擎生成，并由编辑审阅。
译文内容由第三方软件翻译。
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