Returns on Capital at Wetouch Technology Paint a Concerning Picture

Wetouch Technology's (NASDAQ:WETH) return on capital employed (ROCE) has decreased from 32% to 7.4% over the past five years. Despite a slight increase in capital employed, sales have not improved in the past 12 months. The decrease in ROCE may be attributed to the company's suppliers or short-term creditors funding less of the business, but the overall trend is concerning.