Returns On Capital Are A Standout For Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB)

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. 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. And in light of that, the trends we're seeing at Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) look very promising so lets take a look.

Understanding 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 Grupo Aeroportuario del Sureste S. A. B. de C. V is:

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

0.23 = Mex$16b ÷ (Mex$73b - Mex$4.9b) (Based on the trailing twelve months to March 2024).

So, Grupo Aeroportuario del Sureste S. A. B. de C. V has an ROCE of 23%. On its own that's a fantastic return on capital, though it's the same as the Infrastructure industry average of 23%.

Check out our latest analysis for Grupo Aeroportuario del Sureste S. A. B. de C. V

In the above chart we have measured Grupo Aeroportuario del Sureste S. A. B. de C. V's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Grupo Aeroportuario del Sureste S. A. B. de C. V for free.

So How Is Grupo Aeroportuario del Sureste S. A. B. de C. V's ROCE Trending?

We like the trends that we're seeing from Grupo Aeroportuario del Sureste S. A. B. de C. V. The data shows that returns on capital have increased substantially over the last five years to 23%. 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 24%. So we're very much inspired by what we're seeing at Grupo Aeroportuario del Sureste S. A. B. de C. V thanks to its ability to profitably reinvest capital.

What We Can Learn From Grupo Aeroportuario del Sureste S. A. B. de C. V's ROCE

A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Grupo Aeroportuario del Sureste S. A. B. de C. V has. And a remarkable 118% 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.

On a separate note, we've found 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V you'll probably want to know about.

High returns are a key ingredient to strong performance, so check out our free list ofstocks 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.