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Stock impact report

Investors Could Be Concerned With Educational Development's (NASDAQ:EDUC) Returns On Capital [Yahoo! Finance]

Educational Development Corporation (EDUC) 
US:NASDAQ Investor Relations: edcpub.com/investors.aspx
Company Research Source: Yahoo! Finance
A business that's potentially in decline often shows two trends, a return on capital employed (ROCE) that's declining, and a base of capital employed that's also declining. Ultimately this means that the company is earning less per dollar invested and on top of that, it's shrinking its base of capital employed. In light of that, from a first glance at Educational Development NASDAQ:EDUC ), we've spotted some signs that it could be struggling, so let's investigate. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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. Analysts use this formula to calculate it for Educational Development: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.16 = US$6.0m ÷ (US$74m - US$36m) (Based on the trailing twelve months to November 2 Show less Read more
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