Poh Huat Resources Holdings Berhad's Capital Allocation Trends Raise Concerns
AI Summary1 min read
TL;DR
Poh Huat Resources' ROCE fell from 14% to 4.1% in five years, below the industry average. Increased capital use hasn't boosted sales, and lower liabilities may have hurt ROCE.
Tags
ROCECapital AllocationConsumer DurablesFinancial Performance
Poh Huat Resources Holdings Berhad's return on capital employed (ROCE) has declined from 14% to 4.1% over the past five years. The company's ROCE underperforms the consumer durables industry average of 6.7%. Despite employing more capital, there has been no corresponding improvement in sales, suggesting that the investments are longer-term plays. The decrease in current liabilities to 8.2% of total assets may also have contributed to the ROCE drop.
