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Cognyte Software (NASDAQ:CGNT) has a declining return on capital employed (ROCE) of 1.2%, which is lower than the industry average of 8.8%. The business is utilizing 44% less capital and both ROCE and net asset base are shrinking, indicating tough times for the company. Analysts forecast further decline in ROCE, which is an indication that the business is past its growth phase and not compounding shareholder wealth.

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