{"id":680339,"date":"2026-01-07T17:08:17","date_gmt":"2026-01-07T17:08:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/680339\/"},"modified":"2026-01-07T17:08:17","modified_gmt":"2026-01-07T17:08:17","slug":"investors-could-be-concerned-with-usa-todays-nysetday-returns-on-capital","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/680339\/","title":{"rendered":"Investors Could Be Concerned With USA TODAY’s (NYSE:TDAY) Returns On Capital"},"content":{"rendered":"\n

If you’re looking at a mature business that’s past the growth phase, what are some of the underlying trends that pop up? Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. Trends like this ultimately mean the business is reducing its investments and also earning less on what it has invested. On that note, looking into USA TODAY<\/strong> (NYSE:TDAY<\/a>), we weren’t too upbeat about how things were going.<\/p>\n

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.<\/a><\/p>\n

For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for USA TODAY:<\/p>\n

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) \u00f7 (Total Assets – Current Liabilities)<\/strong><\/p>\n

0.036 = US$50m \u00f7 (US$1.9b – US$529m) (Based on the trailing twelve months to September 2025).<\/p>\n

Therefore, USA TODAY has an ROCE of 3.6%.<\/strong> Ultimately, that’s a low return and it under-performs the Media industry average of 9.3%.<\/p>\n

Check out our latest analysis for USA TODAY <\/a><\/p>\n

\"roce\"<\/a> NYSE:TDAY Return on Capital Employed January 7th 2026 <\/p>\n

In the above chart we have measured USA TODAY’s prior ROCE against its prior performance, but the future is arguably more important. If you’d like to see what analysts are forecasting going forward, you should check out our free analyst report for USA TODAY <\/a>.<\/p>\n

The trend of ROCE doesn’t look fantastic because it’s fallen from 6.1% five years ago and the business is utilizing 48% less capital, even after their capital raise (conducted prior to the latest reporting period).<\/p>\n

In short, lower returns and decreasing amounts capital employed in the business doesn’t fill us with confidence. Investors must expect better things on the horizon though because the stock has risen 40% in the last five years. Either way, we aren’t huge fans of the current trends and so with that we think you might find better investments elsewhere.<\/p>\n

One final note, you should learn about the 3 warning signs <\/strong> we’ve spotted with USA TODAY (including 2 which are a bit concerning)<\/a> .<\/p>\n

While USA TODAY isn’t earning the highest return, check out this free<\/strong> list of companies that are earning high returns on equity with solid balance sheets.<\/a><\/p>\n

Have feedback on this article? Concerned about the content?<\/strong> Get in touch<\/strong> with us directly.<\/strong> Alternatively, email editorial-team (at) simplywallst.com.<\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.<\/strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n","protected":false},"excerpt":{"rendered":"If you’re looking at a mature business that’s past the growth phase, what are some of the underlying…\n","protected":false},"author":2,"featured_media":662797,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[206384,206383,49,978,659,35856],"class_list":{"0":"post-680339","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-capital-employed","9":"tag-roce","10":"tag-united-states","11":"tag-us","12":"tag-usa","13":"tag-usa-today"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115854921083218585","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/680339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=680339"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/680339\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/662797"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=680339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=680339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=680339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}