Return on Capital: Top 5 Stocks
Return on Capital is a measurement used for profitability, using net income divided by invested capital. This result shows how effectively a company is employing its capital to produce profits.Below are the top 5 stocks in regards to a three-year average of return on capital.
- Bare Escentuals (BARE)
- Alliance Resource Partners (ARLP)
- ITT Educational Services (ESI)
- Mannatech (MTEX)
- Applix (APLX)
Obviously, ROC is not the only criteria to use when measuring stocks. All you have to do is look at MTEX and see that its stock price lost almost 1/4 of its value in one day of trading recently. So, as always, do your homework.
Written by Nagel on July 14th, 2007 with no comments.
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