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The Return Trends At AleAnna (NASDAQ:ANNA) Look Promising

Simply Wall St · 2d ago

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, AleAnna (NASDAQ:ANNA) looks quite promising in regards to its trends of return on capital.

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Understanding 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 AleAnna, this is the formula:

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

0.014 = US$1.2m ÷ (US$100m - US$18m) (Based on the trailing twelve months to September 2025).

Thus, AleAnna has an ROCE of 1.4%. In absolute terms, that's a low return and it also under-performs the Renewable Energy industry average of 4.2%.

See our latest analysis for AleAnna

roce
NasdaqCM:ANNA Return on Capital Employed December 13th 2025

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of AleAnna.

So How Is AleAnna's ROCE Trending?

AleAnna has recently broken into profitability so their prior investments seem to be paying off. The company was generating losses two years ago, but now it's earning 1.4% which is a sight for sore eyes. In addition to that, AleAnna is employing 197% more capital than previously which is expected of a company that's trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance.

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. Effectively this means that suppliers or short-term creditors are now funding 18% of the business, which is more than it was two years ago. It's worth keeping an eye on this because as the percentage of current liabilities to total assets increases, some aspects of risk also increase.

The Bottom Line

In summary, it's great to see that AleAnna has managed to break into profitability and is continuing to reinvest in its business. However the stock is down a substantial 71% in the last three years so there could be other areas of the business hurting its prospects. Still, it's worth doing some further research to see if the trends will continue into the future.

One more thing, we've spotted 1 warning sign facing AleAnna that you might find interesting.

While AleAnna isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.