SWX:SRAILMachinery
How Declining Returns and Rising Short-Term Liabilities at Stadler Rail (SWX:SRAIL) Has Changed Its Investment Story
Stadler Rail recently reported a decline in return on capital employed over the past five years, falling to 6.3% and lagging the Machinery industry average of 16%, while capital employed remained largely unchanged.
This drop in returns, combined with a current liabilities to total assets ratio of 69%, points to both a more mature business profile and heightened financial risk due to increased reliance on short-term funding.
We'll now explore how the reduced return on capital employed alters...