INEO's Returns on Capital Employed: Reasons to Feel Uneasy

INNEOVA Holdings (NASDAQ:INEO) has a low return on capital employed (ROCE) of 0.6%, which underperforms the Retail Distributors industry average of 14%. The ROCE has also fallen from 9.5% over the last four years, and the company has a high ratio of current liabilities to total assets of 72%. Despite reinvesting profits at increasing rates, the low ROCE and declining trend raise concerns about the company's ability to generate returns in the future.