ASL Marine Holdings (SGX:A04) Is Experiencing Growth In Returns On Capital

Simply Wall St

Sun, February 15, 2026 at 11:16 AM GMT+9 3 min read

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Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we’ll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So when we looked at ASL Marine Holdings (SGX:A04) and its trend of ROCE, we really liked what we saw.

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Return On Capital Employed (ROCE): What Is It?

If you haven’t worked with ROCE before, it measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for ASL Marine Holdings:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.16 = S$40m ÷ (S$475m - S$228m) (Based on the trailing twelve months to December 2025).

Thus, **ASL Marine Holdings has an ROCE of 16%. ** On its own, that’s a standard return, however it’s much better than the 5.4% generated by the Machinery industry.

See our latest analysis for ASL Marine Holdings

SGX:A04 Return on Capital Employed February 15th 2026

Above you can see how the current ROCE for ASL Marine Holdings compares to its prior returns on capital, but there’s only so much you can tell from the past. If you’d like to see what analysts are forecasting going forward, you should check out our free analyst report for ASL Marine Holdings .

What Can We Tell From ASL Marine Holdings’ ROCE Trend?

Like most people, we’re pleased that ASL Marine Holdings is now generating some pretax earnings. While the business is profitable now, it used to be incurring losses on invested capital five years ago. Additionally, the business is utilizing 43% less capital than it was five years ago, and taken at face value, that can mean the company needs less funds at work to get a return. This could potentially mean that the company is selling some of its assets.

For the record though, there was a noticeable increase in the company’s current liabilities over the period, so we would attribute some of the ROCE growth to that. The current liabilities has increased to 48% of total assets, so the business is now more funded by the likes of its suppliers or short-term creditors. Given it’s pretty high ratio, we’d remind investors that having current liabilities at those levels can bring about some risks in certain businesses.

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The Key Takeaway

In summary, it’s great to see that ASL Marine Holdings has been able to turn things around and earn higher returns on lower amounts of capital. And a remarkable 821% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it’s worth looking further into this stock because if ASL Marine Holdings can keep these trends up, it could have a bright future ahead.

If you want to know some of the risks facing ASL Marine Holdings we’ve found 2 warning signs (1 can’t be ignored!) that you should be aware of before investing here.

If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

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. 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.

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