Returns Are Gaining Momentum At Aurionpro Solutions (NSE:AURIONPRO)

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. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Aurionpro Solutions' (NSE:AURIONPRO) returns on capital, so let's have a look.

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Return On Capital Employed (ROCE): What Is It?

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Aurionpro Solutions:

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

0.14 = ₹2.4b ÷ (₹21b - ₹3.8b) (Based on the trailing twelve months to September 2025).

So, Aurionpro Solutions has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 11% generated by the Software industry.

Check out our latest analysis for Aurionpro Solutions

In the above chart we have measured Aurionpro Solutions' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Aurionpro Solutions .

What The Trend Of ROCE Can Tell Us

Aurionpro Solutions is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 14%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 133%. So we're very much inspired by what we're seeing at Aurionpro Solutions thanks to its ability to profitably reinvest capital.

Our Take On Aurionpro Solutions' ROCE

All in all, it's terrific to see that Aurionpro Solutions is reaping the rewards from prior investments and is growing its capital base. And a remarkable 2,452% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue.

One more thing, we've spotted 1 warning sign facing Aurionpro Solutions that you might find interesting.

While Aurionpro Solutions may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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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.