Here's What's Concerning About SBS Transit's (SGX:S61) Returns On Capital

Here's What's Concerning About SBS Transit's (SGX:S61) Returns On Capital

Monitoring financial metrics like ROCE can indicate business troubles, with declining ROCE suggesting reduced earnings on investments. SBS Transit's ROCE of 9.7% is below the industry average of 6.4%, indicating a downward trend in returns over the years.

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