JD.com (JD) Shows Promising Return on Capital Trends

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3 days ago
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  • JD.com (JD, Financial) improves its return on capital employed to 9.9%, showcasing growth.
  • Company expands capital base by 233%, signaling strong internal investment potential.
  • Reduction in current liabilities to total assets ratio indicates less reliance on short-term debt.

JD.com's Financial Performance Highlights

JD.com (JD) has made impressive strides in enhancing its financial performance, demonstrated by a return on capital employed (ROCE) reaching 9.9%. While this figure remains below the industry average, the improvement is a positive indicator for investors.

Capital Base Expansion

One of the standout metrics for JD.com is the significant growth in its capital base, which has surged by an astounding 233%. This expansion underlines the company's robust internal investment opportunities, positioning it well for future growth and development.

Decreasing Dependency on Short-Term Creditors

Another noteworthy aspect of JD.com's financials is the decrease in the ratio of current liabilities to total assets. This shift suggests that the company is becoming less dependent on short-term creditors, a positive move towards sustainable financial stability and reduced financial risk.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.