Returns On Capital Signal Difficult Times Ahead For TriMas (NASDAQ:TRS)
TriMas's declining returns on capital employed signal difficult times ahead for the company. The trend of both declining ROCE and decreasing capital employed indicates that the company is earning less on its investments and reducing its total assets. This combination can be indicative of a mature business with areas to deploy capital, but lower returns received due to potentially new competition or smaller margins.
- The decline in TriMas's returns on capital employed suggests that the company may need to reevaluate its business strategy to increase profitability, which could involve exploring new revenue streams or cost-cutting measures.
- Can TriMas's management team still salvage the stock by identifying and addressing underlying issues before it becomes too late for long-term shareholders?