Interesting article - Yahoo Finance - SIMPLY WALL ST

We Like Brookside Energy's (ASX:BRK) Returns And Here's How They're Trending

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at the ROCE trend of Brookside Energy (ASX:BRK) we really liked what we saw.

What Is Return On Capital Employed (ROCE)?

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Brookside Energy, this is the formula:

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

0.20 = AU$15m ÷ (AU$90m - AU$13m)
(Based on the trailing twelve months to June 2023).What is the next 12 months going to look like???? $$$

So, Brookside Energy has an ROCE of 20%. That's a fantastic return and not only that, it outpaces the average of 9.9% earned by companies in a similar industry.

IMHO
DYOR

https://finance.yahoo.com/news/brookside-energys-asx-brk-returns-233525134.html?.tsrc=rss&guccounter=1&guce_referrer=aHR0cHM6Ly9hc3guc3dpbmd0cmFkZWJvdC5jb20v&guce_referrer_sig=AQAAAB_luGorLtj_S6AetBaJY5lY4lZYY5jFodVkD0cbhS-AeY5jWOfXi9TE7ovxl2cyLKvcrD_0iYId-htMHNDzDOF9uQnsQ9lHznOoKOEtlSnh7NiEeARaC8Aez-UrIBqhbj11E0MfVPDy2j7fMjG-gKBSxniJhSVxehBvLA7KEPvj