ROCE Insights For Allstate

Allstate ALL showed a loss in earnings since Q2, totaling $1.52 billion. Sales, on the other hand, increased by 2.5% to $9.88 billion during Q3. Allstate reached earnings of $1.62 billion and sales of $9.64 billion in Q2.

What Is Return On Capital Employed?

Changes in earnings and sales indicate shifts in Allstate's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q3, Allstate posted an ROCE of 0.06%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In Allstate's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q3 Earnings Recap

Allstate reported Q3 earnings per share at $2.94/share, which beat analyst predictions of $1.66/share.

Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsBZI-ROCE
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...