Published on 27 Feb 2024 on Simply Wall St. via Yahoo Finance

Chocoladefabriken Lindt & Sprüngli (VTX:LISN) Is Experiencing Growth In Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Chocoladefabriken Lindt & Sprüngli (VTX:LISN) and its trend of ROCE, we really liked what we saw.

Return On Capital Employed (ROCE): What Is It?

For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Chocoladefabriken Lindt & Sprüngli, this is the formula: