Capital Investment Trends At Dino Polska (WSE:DNP) Look Strong

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. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount 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. Ergo, when we looked at the ROCE trends at Dino Polska (WSE:DNP), we liked what we saw.

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

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. To calculate this metric for Dino Polska, this is the formula:

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

0.24 = zł1.9b ÷ (zł13b - zł4.8b) (Based on the trailing twelve months to March 2025).

Thus, Dino Polska has an ROCE of 24%. In absolute terms that's a great return and it's even better than the Consumer Retailing industry average of 19%.

Check out our latest analysis for Dino Polska

Above you can see how the current ROCE for Dino Polska compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Dino Polska .

What The Trend Of ROCE Can Tell Us

It's hard not to be impressed by Dino Polska's returns on capital. Over the past five years, ROCE has remained relatively flat at around 24% and the business has deployed 191% more capital into its operations. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. If Dino Polska can keep this up, we'd be very optimistic about its future.

Our Take On Dino Polska's ROCE

Dino Polska has demonstrated its proficiency by generating high returns on increasing amounts of capital employed, which we're thrilled about. And long term investors would be thrilled with the 162% return they've received over the last five years. So while investors seem to be recognizing these promising trends, we still believe the stock deserves further research.

While Dino Polska looks impressive, no company is worth an infinite price. The intrinsic value infographic for DNP helps visualize whether it is currently trading for a fair price.

Dino Polska is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals.

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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.