Santa Barbara International Film Festival Reveals Writer and Producer Panels — Exclusive
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In Q3, Lemonade (NYSE: LMND ) posted sales of $17.80 million. Earnings were up 46.89%, but Lemonade still reported an overall loss of $30.70 million. In Q2, Lemonade brought in $29.90 million in sales but lost $20.90 million in earnings. What Is ROCE? Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a companys ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Lemonade posted an ROCE of -0.05%. Keep in mind, while ROCE is a good measure of a companys recent performance, it is not a highly reliable predictor of a companys earnings or sales in the near future. View more earnings on LMND ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Lemonade 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 earnings per share growth. For Lemonade, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions. Q3 Earnings Recap Lemonade reported Q3 earnings per share at $-0.57/share, which beat analyst predictions of $-0.64/share. See more from Benzinga Click here for options trades from Benzinga 5 Value Stocks To Watch In The Consumer Defensive Sector A Look Into Basic Materials Sector Value Stocks © 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. View comments
Crafting a Life of Passion and Purpose with Adam McKee
Explore the essence of craftsmanship in business and life with insights from Adam McKee, owner of Contemporary Woods.