--- title: "Arko's (NASDAQ:ARKO) Returns On Capital Are Heading Higher" description: "Arko (NASDAQ:ARKO) is showing an upward trend in its return on capital employed (ROCE), now at 3.0%, although it still lags behind the industry average of 13%. The company has significantly increased " type: "news" locale: "en" url: "https://longbridge.com/en/news/251301525.md" published_at: "2025-08-02T16:35:29.000Z" --- # Arko's (NASDAQ:ARKO) Returns On Capital Are Heading Higher > Arko (NASDAQ:ARKO) is showing an upward trend in its return on capital employed (ROCE), now at 3.0%, although it still lags behind the industry average of 13%. The company has significantly increased its capital employed by 99% compared to five years ago, indicating potential for future growth. Despite a 58% decline in stock price over the past five years, Arko's shift to profitability and reinvestment in the business presents a possible investment opportunity. Caution is advised due to identified risks associated with the company. What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'll want to see a proven *return* on capital employed (ROCE) that is increasing, and secondly, an expanding *base* of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in **Arko's** (NASDAQ:ARKO) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ## Understanding Return On Capital Employed (ROCE) For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Arko is: **Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)** 0.03 = US$93m ÷ (US$3.6b - US$463m) *(Based on the trailing twelve months to March 2025)*. Thus, **Arko has an ROCE of 3.0%.** Ultimately, that's a low return and it under-performs the Specialty Retail industry average of 13%. See our latest analysis for Arko In the above chart we have measured Arko's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our **free** analyst report for Arko . ## What Can We Tell From Arko's ROCE Trend? We're delighted to see that Arko is reaping rewards from its investments and is now generating some pre-tax profits. Shareholders would no doubt be pleased with this because the business was loss-making five years ago but is is now generating 3.0% on its capital. In addition to that, Arko is employing 99% more capital than previously which is expected of a company that's trying to break into profitability. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. ## The Bottom Line In summary, it's great to see that Arko has managed to break into profitability and is continuing to reinvest in its business. And since the stock has fallen 58% over the last five years, there might be an opportunity here. So researching this company further and determining whether or not these trends will continue seems justified. If you want to know some of the risks facing Arko we've found **4 warning signs** (1 is concerning!) that you should be aware of before investing here. While Arko isn't earning the highest return, check out this **free** list of companies that are earning high returns on equity with solid balance sheets. ### Related Stocks - [ARKO.US - Arko](https://longbridge.com/en/quote/ARKO.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | ARKO Petroleum shares fall in Nasdaq debut | ARKO Petroleum shares fell 1.4% in their Nasdaq debut, valuing the company at $807.63 million. The shares opened at $17. | [Link](https://longbridge.com/en/news/275792110.md) | | The IPO Buzz: ARKO Petroleum (APC) Upsizes IPO & Prices IPO at $18 – Low End | ARKO Petroleum (APC) has upsized its IPO to 11.11 million shares, priced at $18.00, raising $200 million. The company, w | [Link](https://longbridge.com/en/news/275729296.md) | | Preview: Arko Petroleum Corp Set To IPO Tomorrow | ARKO Petroleum Corp is set to IPO on February 12 on NASDAQ under the ticker APC, offering shares priced between $18.00 a | [Link](https://longbridge.com/en/news/275628302.md) | | ARKO Petroleum raises $200 million in upsized US IPO | ARKO Petroleum has successfully raised nearly $200 million through its upsized U.S. IPO, pricing 11.11 million shares at | [Link](https://longbridge.com/en/news/275745407.md) | | ARKO Announces Pricing Of ARKO Petroleum's Initial Public Offering Of 11.11 Mln Shares | ARKO Corporation and its subsidiary ARKO Petroleum Corporation have announced the pricing of ARKO Petroleum's initial pu | [Link](https://longbridge.com/en/news/275714258.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.