We Like These Underlying Return On Capital Trends At FLEX LNG (NYSE:FLNG)

We Like These Underlying Return On Capital Trends At FLEX LNG (NYSE:FLNG)

Some financial metrics can hint at the potential for a multi-bagger investment. Two key indicators are a growing return on capital employed (ROCE) and an expansion in the company's capital employed. These reflect a company's ability to reinvest profitably, a hallmark of compounding growth.

FLEX LNG (NYSE:FLNG) shows promising trends in its return on capital. ROCE measures the pre-tax profits generated by the capital invested in the business. For FLEX LNG, the formula is:

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

Using the trailing twelve months to June 2025:

While 7.8% is a modest return in absolute terms, it is close to the Oil and Gas industry average of 9.2%. Comparing FLEX LNG’s past ROCE to its performance shows improvement, though future prospects may be more crucial.

Analyst forecasts on FLEX LNG’s outlook are available and worth considering for investors interested in this company.

Author's summary: FLEX LNG displays improving return on capital trends that align with industry averages, indicating potential for sustainable reinvestment and growth.

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Sahm Sahm — 2025-11-02

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