During Q3, Modern‘s (NASDAQ: MRNA)’s sales amounted to $ 157.91 million. Despite 92.52% earnings, the company posted a loss of $ 235.12 million. In the second quarter, Moderna brought in $ 66.35 million in sales, but lost $ 122.13 million in revenue.
What is ROCE?
Changes in earnings and sales indicate shifts in Moderna’s return on capital, a measure of the annual profit before tax in relation to capital used in a business. Overall, a higher ROCE indicates a successful growth of a company and is a sign of higher earnings per share in the future. In Q3, Moderna posted a ROCE of -0.09%.
It is important to keep in mind that ROCE evaluates past achievements and is not used as a predictive tool. This is a good measure of a business’ recent performance, but several factors can affect its earnings and sales in the near future.
ROCE is an important benchmark for comparing similar companies. A relatively high ROCE shows that Moderna may be operating at a higher level of efficiency than other companies in its industry. If the company with its current capital level produces high profits, some of the money can be reinvested in more capital, which usually leads to higher returns and growth in earnings per share.
For Moderna, the return on capital ratio indicates that the current amount of assets may not help the company achieve higher returns, which many investors will take into account when making long-term financial decisions.
Q3 Earnings Insight
Moderna reported Q3 earnings per share at $ -0.59 / share, which did not meet analysts’ forecasts of $ -0.43 / share.
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