Atento (NYSE:ATTO) Is Finding It Tricky To Allocate Its Capital

Published on 22 Jul 2022 on Simply Wall St. via Yahoo Finance

Atento (NYSE:ATTO) Is Finding It Tricky To Allocate Its Capital

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics that can help spot trouble early. When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging. Trends like this ultimately mean the business is reducing its investments and also earning less on what it has invested. And from a first read, things don't look too good at Atento (NYSE:ATTO), so let's see why.

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 Atento, this is the formula:

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Atento (NYSE:ATTO) Is Finding It Tricky To Allocate Its Capital

NYSE.ATTO price evolution

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