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Simply Wall St

Cake Box Holdings's (LON:CBOX) 25% ROCE shows it is reinvesting in its capital, but its returns are falling

Simply Wall St
Summary
Nutrition label

77% Informative

Cake Box Holdings (LON: CBOX ) has a Return On Capital Employed (ROCE) of 25% .

This is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Historically returns on capital were even higher at 46% , but they have dropped over the last five years .

On the other hand, the company has been employing more capital without a corresponding improvement in sales.