Hapag-Lloyd's Impressive Returns

Stock market

To find a big investment, we look for hints in trends. We want to see an increase in return on capital and more capital being used. This means they're able to keep reinvesting their earnings to make more. Hapag-Lloyd looks good, so let's investigate.

Mastering ROCE: The Key To Financial Success

ROCE is a way to measure how much profit a company can make from its capital. Hapag-Lloyd's formula for calculating it is:

ROCE means how much profit a company makes compared to how much it invests. To calculate ROCE, you need to know two things: EBIT and the value of assets minus current liabilities. EBIT is short for "Earnings Before Interest and Tax." Current liabilities are debts that the company needs to pay back soon. If a company has a higher ROCE, it means they are using their money wisely. ROCE can help investors decide whether to invest in a company or not.

The number 0.45 equals something called a ratio. That ratio is calculated using two different amounts of money: €15 billion and (€40 billion minus €6.2 billion). Those two numbers represent the previous twelve months leading up to March 2023.

Hapag-Lloyd's ROCE is 45%. That's good. It's even better than what other shipping companies usually get (15%).

Check out our newest review for Hapag-Lloyd. We've analyzed the company's latest performance and financials. Our analysis is based on thorough research and reliable data. Get a comprehensive understanding of Hapag-Lloyd's current situation. Find out if now is a good time to invest in the company. Stay informed and make informed investment decisions.

You can see Hapag-Lloyd's ROCE now and before. But, past information only goes so far. If interested, check out our free report for analyst predictions.

Hapag-Lloyd's ROCE Trend: Insights?

Hapag-Lloyd has good news for investors. In the last five years, it has raised returns on capital employed to 45%. This means it's earning more per dollar of investment. It's also using 188% more capital now. That suggests more chances to invest capital at higher rates. This is a common trait of successful companies.

Takeaways From Hapag-Lloyd's ROCE

Hapag-Lloyd is doing well. They are investing in the business and making more money. Investors think they will do well in the future. We think we should check more about Hapag-Lloyd because they are doing well.

Every company is at risk, so it's important to know what those risks are. For Hapag-Lloyd, we have identified 3 warning signs, 2 of which are very important. It's crucial that you are aware of these signs.

Looking for more high-earning stocks? Take a look at this list. It's free and shows the stocks with strong balance sheets and high returns on equity.

Simplifying Valuation, With Our Help

Want to know if Hapag-Lloyd is a good deal? We've got you covered with our in-depth analysis. We'll give you fair value estimates, warn you about risks, and even tell you about insider transactions. Plus, we'll show you how Hapag-Lloyd is doing financially.

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Do you have thoughts on this article? Worried about what it says? Contact us directly or email editorial-team (at) simplywallst.com.

We wrote an article at Simply Wall St. It's about historical data and what analysts say. We are impartial and don't give financial advice. We don't suggest buying or selling any stocks. Your goals and financial situation matter. Our analysis comes from fundamental data for the long term. We don't always include the newest business announcements. Simply Wall St doesn't have any stock positions.

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