The Return Trends At ACS Actividades de Construcción y Servicios (BME:ACS) Look Promising

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at ACS Actividades de Construcción y Servicios (BME:ACS) and its trend of ROCE, we really liked what we saw.

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What Is Return On Capital Employed (ROCE)?

For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on ACS Actividades de Construcción y Servicios is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.092 = €1.7b ÷ (€41b - €23b) (Based on the trailing twelve months to June 2025).

Thus, ACS Actividades de Construcción y Servicios has an ROCE of 9.2%. In absolute terms, that's a low return but it's around the Construction industry average of 10%.

Check out our latest analysis for ACS Actividades de Construcción y Servicios

Above you can see how the current ROCE for ACS Actividades de Construcción y Servicios compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for ACS Actividades de Construcción y Servicios .

What Can We Tell From ACS Actividades de Construcción y Servicios' ROCE Trend?

ACS Actividades de Construcción y Servicios has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 137% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward.

On a separate but related note, it's important to know that ACS Actividades de Construcción y Servicios has a current liabilities to total assets ratio of 56%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.

Our Take On ACS Actividades de Construcción y Servicios' ROCE

In summary, we're delighted to see that ACS Actividades de Construcción y Servicios has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And a remarkable 308% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

If you want to know some of the risks facing ACS Actividades de Construcción y Servicios we've found 2 warning signs (1 shouldn't be ignored!) that you should be aware of before investing here.

While ACS Actividades de Construcción y Servicios isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.