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There Are Reasons To Feel Uneasy About Turtle Beach's (NASDAQ:TBCH) Returns On Capital [Yahoo! Finance]

Turtle Beach Corporation (TBCH) 
Company Research Source: Yahoo! Finance
Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at Turtle Beach NASDAQ:TBCH ) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Return On Capital Employed (ROCE): What Is It? If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Turtle Beach, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$28m ÷ (US$278m - US$112m) (Based on the trailing Show less Read more
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