---
title: "Analyzing Serica Energy's Excellent Capital Allocation Strategies and Growing ROCE"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/208668214.md"
description: "Serica Energy (LON:SQZ) is a compounding machine, evidenced by its increasing return on capital employed (ROCE) and growth in capital employed over the past five years. With a current ROCE of 29%, significantly above the industry average of 10%, the company has effectively leveraged its assets to generate higher profits without relying on additional liabilities. This positive trend has seen ROCE rise from 11% five years ago, reflecting successful reinvestment and profitability."
datetime: "2024-07-12T05:43:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/208668214.md)
  - [en](https://longbridge.com/en/news/208668214.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/208668214.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/208668214.md) | [繁體中文](https://longbridge.com/zh-HK/news/208668214.md)


# Analyzing Serica Energy's Excellent Capital Allocation Strategies and Growing ROCE

Serica Energy (LON:SQZ) is a compounding machine, evidenced by its increasing return on capital employed (ROCE) and growth in capital employed over the past five years. With a current ROCE of 29%, significantly above the industry average of 10%, the company has effectively leveraged its assets to generate higher profits without relying on additional liabilities. This positive trend has seen ROCE rise from 11% five years ago, reflecting successful reinvestment and profitability.

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- [Serica Energy PLC (SQZ.UK)](https://longbridge.com/en/quote/SQZ.UK.md)

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