We like Qualies' (Nasdaq: Qlys) returns and so trends in trend

What trends should we seek to identify shares that can multiply a value in the long term? In a perfect world we want a company to invest more capital in its business, and ideally the returns rise from this capital. If you see this, this usually means a company with a great business model and much profitable reinvestment opportunities. So when we looked at the Roce trend Qualies (Nasdaq: Qlys) We really liked what we saw.

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Capital return (Roce): What is it?

For those who do not know, Roce is a measure of the annual input tax gain in a company (its return) compared to the capital employed in business. Analysts use this formula to calculate them for qualies:

Capital returns employed = profits before interest and taxes (EBIT) ÷ (total assets – current liabilities)

0.34 = US $ 187m ÷ ($ 974 million – US $ 428m) (Based on the following twelve months to December 2024).

So, Qualies has a Roce of 34%. This is a fantastic return and not only that, it exceeds an average of 9.7% of companies in a similar industry.

Take a look at our latest analysis for Qualies

Above you can see how the current Roce for Qualies is compared with its previous capital returns, but there is only so much that you can see from the past. If you are interested, you can do the analyst forecasts in our ads free Analyst report for Qualies.

How will the returns be trenders?

Qualies shows some positive trends. In the past five years, the capital returns have increased significantly to 34%. In principle, the company earns more invested capital, and in addition, 21% more capital is now employed. The increasing returns for a growing capital amount are common for multi-excavators, and therefore we are impressed.

For the recording, however, there was a noticeable increase in the company's current liabilities in the period, so that we would attribute Roce growth to Roce growth. In essence, the company now has suppliers or short -term creditors who finance about 44% of its business, which is not ideal. In view of the rather high relationship, we would remind investors that the current liabilities at these levels can cause some risks in certain companies.

The end result of the Qualy 'Roce

In summary, it is great to see that Qualy's returns can achieve by consistently investing the capital again to increase the return, as this are some of the most important ingredients of those who are highly asked. In view of the fact that the share has delivered 25% to its shareholders in the past five years, it may be fair to believe that investors are not yet fully aware of the promising trends. So if you explore more about this inventory, you can uncover a good chance if the evaluation and other metrics stack.

On the other side of Roce, we have to consider the evaluation. That's why we have one Free intrinsic appreciation for Qlys on our platform It is definitely worth checking it.

If you want to see other companies that achieve high returns, read ours free List of companies that achieve high returns with solid balance sheets.

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This article by Simply Wall Street is a general nature. We offer comments based on historical data and analyst forecasts that only use an impartial methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We would like to use a long -term focused analysis by basic data. Note that our analysis may not take into account the latest record -sensitive announcements or qualitative material. Simply Wall Street has no position in the stocks mentioned.