Returns On Capital At Aptitude Software Group (LON:APTD) Have Stalled
Aptitude Software Group's returns on capital have stalled, with a proven return on capital employed (ROCE) that is increasing and an expanding base of capital employed being absent. The company's reliance on selling assets to sustain its operations raises concerns about the long-term sustainability of its business model. Furthermore, the flat returns on capital over the past five years suggest that the business may not be generating enough value from its investments.
- The stagnation of Aptitude Software Group's returns on capital underscores the importance of identifying and addressing underlying trends in a company's financial performance.
- What are the potential implications for investors if a multi-bagger stock like Aptitude Software Group fails to demonstrate increasing returns on capital employed?