 During Q2, Avinger NASDAQ: AVGR brought in sales totaling 1.50 million. However, earnings decreased 34.44, resulting in a loss of 3.59 million. In Q1, Avinger brought in 2.26 million in sales but lost 5.48 million in earnings.What Is Return On Capital Employed? Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed in a business. Changes in earnings and sales indicate shifts in a companys ROCE. A higher ROCE is generally representative of successful growth in a company and is a sign of higher earnings per share for shareholders in the future. A low or negative ROCE suggests the opposite. In Q2, Avinger posted an ROCE of -0.48.Keep in mind, while ROCE is a good measure of a companys recent performance, it is not a highly reliable predictor of a companys earnings or sales in the near future.View more earnings on AVGRROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Avinger is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will lead to higher returns and earnings per share growth.For Avinger, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.Q2 Earnings Insight Avinger reported Q2 earnings per share at -0.18share, which beat analyst predictions of -0.2share.See more from Benzinga Looking Into Newmont Goldcorps Return On Capital Employed ROCE Insights For Overstock.com Return On Capital Employed Overview: Unity BiotechnologyC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 