YX Precious Metals Bhd (KLSE:YXPM) is showing promising signs of potential growth in the long term, based on its Return on Capital Employed (ROCE) trends. ROCE is a key metric used to evaluate how efficiently a company is utilizing its capital to generate profits. YX Precious Metals Bhd currently has an ROCE of 12%, which is in line with the industry average.
Over the past five years, YX Precious Metals Bhd has seen a significant increase in its returns on capital employed, indicating that the company is making more money per dollar of capital used. Additionally, the amount of capital employed has also expanded by 176%, suggesting that there are ample opportunities for the company to reinvest profits at increasing rates of return.
Furthermore, YX Precious Metals Bhd has managed to reduce its ratio of current liabilities to total assets, indicating a decrease in reliance on short-term funding sources. This improvement in ROCE is a positive sign of the company’s underlying financial health and potential for future growth.
While the stock’s total return has been relatively flat over the past year, the positive trends in ROCE suggest that there may be an opportunity for growth if the valuation is favorable. Investors are advised to conduct further research and analysis on YX Precious Metals Bhd to fully understand the potential investment opportunity it presents.