Yellow | Yellow 4Th Q Investor Presentation

Going have my Cayman office take a look at this ( ROCE ) info ??




Simply Wall St
November 19, 2021




If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. In light of that, when we looked at Yellow (NASDAQ:YELL) and its ROCE trend, we weren't exactly thrilled.

Understanding Return On Capital Employed (ROCE)​

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Yellow is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.039 = US$66m ÷ (US$2.5b - US$763m) (Based on the trailing twelve months to September 2021).
So, Yellow has an ROCE of 3.9%. In absolute terms, that's a low return and it also under-performs the Transportation industry average of 12%.
Geez Wong, I’m still trying to figure out how a company with a market cap of 693M is gonna pay the government back 700M. Especially with a dwindling supply of mirrors for my smoke and mirror presentation.
 
I could probably come up with some mirrors for you, EL. They might have a little damage though.
I could lend you some from the Coop warehouse to help your ROMB (Return On Mirrors Borrowed), El…….
You guys are the best! But, aren’t you concerned with repercussions associated with helping competitors when there are those in the Coop family who might be without?
 
The average length of employee seniority is longer at YRC Freight than at the other operating subsidiaries. That is the only reason that YRC Freight Teamsters would be placed ahead of other Teamsters. Dovetailing is the procedure specified in the Collective Bargaining Agreements. Unfortunately, there are too many so-called brothers and sisters who do not understand the VERY SPECIFIC contract language, regarding mergers.
all adressed in last contract all employees will be dovetailed we are one company
 
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