Applied Optoelectronics Stock

Applied Optoelectronics ROCE

The Return on Capital Employed (ROCE) of Applied Optoelectronics (AAOI) as of Aug 12, 2026 is -7.44 %. In the previous year, Return on Capital Employed (ROCE) was -30.95 % — a change of -75.96% (higher).

ROCE

-7.44 %

YoY

-75.96%

Last updated:

In 2026, Applied Optoelectronics's return on capital employed (ROCE) was -7.44 %, a -75.96% increase from the -30.95 % ROCE in the previous year.

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Applied Optoelectronics Stock analysis

What does Applied Optoelectronics do? Applied Optoelectronics Inc. is a Texas-based company specializing in the development and manufacturing of optical components and subsystems for communication networks. The company was founded in 1997 by Dr. Thompson Lin. Applied Optoelectronics focuses on four core growth sectors: data centers, telecommunications, CATV, and FTTH networks. The company offers specialized optical components and devices in each of these areas. Its product range includes optical transceivers, VCSELs, transmission equipment, and photodiodes, among others. The company's strong research and development department ensures that it stays up to date with the latest technology and can provide innovative products and solutions to meet market demands. Applied Optoelectronics is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling Applied Optoelectronics's Return on Capital Employed (ROCE)

Applied Optoelectronics's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Applied Optoelectronics's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Applied Optoelectronics's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Applied Optoelectronics’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Applied Optoelectronics stock

Return on Capital Employed (ROCE) of Applied Optoelectronics is -7.44 % in 2026.

Return on Capital Employed (ROCE) of Applied Optoelectronics changed from -30.95 % to -7.44 %, representing a -75.96% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) Applied Optoelectronics since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s Applied Optoelectronics with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — Applied Optoelectronics

All Key Metrics — Applied Optoelectronics