We like IMIS (LON: IMI) Return and here is how they are trendy

If we want to find a potential multi-excavator, there are often underlying trends that can offer clues. In a perfect world we want a company to invest more capital in its business, and ideally the returns rise from this capital. This shows us that it is a compounding machine that can continuously invest your income back into business and achieve higher returns. With this in mind, the roce of Imi (LON: IMI) looks good, so see what the trend can tell us.

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Understand capital return (Roce)

Just to clarify whether you are not sure is Roce a metric to evaluate how much input tax income (in percentage limitation) a company earns into the capital invested in his business. Analysts use this formula to calculate them for IMI:

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

0.25 = Great Britain £ 410m ÷ (UK £ 2.5 billion – UK £ 844m) (Based on the following twelve months to December 2024).

So, IMI has a Roce of 25%. This is a fantastic return and not only that, it exceeds the average of 14%that companies have earned in a similar industry.

See our latest analysis for IMI

In the table above we measured IMIS former Roce against its previous performance, but the future is more important. If you want to see which analysts predict in the future, you should see our free analyst report for IMI.

What does the Roce trend tell us for IMI?

We like the trends we see from IMI. The figures show that the returns that have been on capital have increased significantly to 25%in the past five years. The amount of the employed capital has also increased by 31%. The increasing returns for a growing capital amount are common for multi-excavators, and therefore we are impressed.

Our attitude to IMIS Roce

All in all, it is great to see that IMI uses the rewards of previous investments and has expanded its capital base. And since the share is exceptionally well in the past five years, these patterns are taken into account by investors. Therefore, we believe that it would be worth checking whether these trends are continued.

Finally we found out 1 warning sign for IMI That we think you should be aware of 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.