RLX Technology's ROCE Falls to 1.2%, Raises Concerns for Multi-Bagger Potential

RLX Technology's return on capital employed (ROCE) has fallen from 9.3% over the last five years to 1.2%, underperforming the Tobacco industry average of 23%. Although the business is pursuing growth, the short-term returns may be sacrificed. The ROCE trend and decreasing current liabilities suggest that the company is becoming less efficient at generating returns.