Published on 14 Dec 2023 on Simply Wall St. via Yahoo Finance

Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) Could Be Struggling To...

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. In light of that, when we looked at Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) and its ROCE trend, we weren't exactly thrilled.

Understanding Return On Capital Employed (ROCE)

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Loma Negra Compañía Industrial Argentina Sociedad Anónima is: