Hongli Group's ROCE falls from 40% to 2.5% as capital employed grows 737%.

Hongli Group's (NASDAQ:HLP) return on capital employed (ROCE) is 2.5%, which is low and underperforms the Metals and Mining industry average of 10%. ROCE has declined from 40% five years ago despite a 737% increase in capital employed. The funds raised in a recent capital raise have not yet been put to work, so the future impact on earnings is uncertain.