Why Return On Capital Employed (ROCE) Is Important – Part 2

Today, we share Why Return On Capital Employed (ROCE) Is Important, and what it’s important on multiple levels. This is a Part 2 of 3 of this Topic.

In this series, you’ll learn my entire process from the beginning to the end of valuations and evaluations. We also talk about how I find companies to research further.

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In this video, you can see how I find stocks to research like this.

At first, a couple of weeks ago, I showed you my analysis and thoughts on French company Dassault Systemes (DASTY). Then told you why even though it had massive margins I wouldn’t invest in it now.

After that, I showed you my analysis and thoughts on the Japanese company Fanuc Corp (FANUY) and why I won’t be investing in it. In addition, I also share a tip on how to potentially spot problems with companies whose margins fall a lot in a short period of time.

Today, let’s take a couple of steps back though and answer the question.

Let’s get to it

Why Return On Capital Employed (ROCE) Is Important?

Why Return On Capital Employed (ROCE) Is Important – Part 2

In the 8- the minute video above, I showed you the following things:

  • Why ROCE is important
  • On multiple levels
  • How can you use this to evaluate a company’s management, valuation, competitive advantages, and competition
  • And more…

Your thoughts

If you have any questions or comments about anything in the video above, or this ongoing series, let me know.

Here are the resources related to this topic:

Get your 5 free gifts including the value investing journey valuation and profitability metric template seen in the video by clicking here.

I’m going to teach as much as possible in this series and in these videos, so the more questions and comments we have, the more you’ll learn, so please put any comments and questions in the comments section below this post.

Seriously, and I say this to all my coaching and training clients as well.

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Even if it’s a minor question, you think may be stupid, ask it.

If you’re investing real-world money, a ‘stupid question’ can cost you real money and frustration, so don’t hesitate to ask.

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P.S. If you want to learn more about ROIC and how to value and evaluate stocks fast make sure to check out our Value Investing Masterclass and Value Investing Coaching Program by clicking the links in this sentence.

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