Article taken from: finance.yahoo.com
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Typically, we’ll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. […] Speaking of which, we noticed some great changes in Driver Group’s ( LON:DRV ) returns on capital, so let’s have a look. Understanding Return On Capital Employed (ROCE) For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. […] To sum it up, Driver Group has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific.
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