When Rotala PLC (LON:ROL) announced its most recent earnings (30 November 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Rotala performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see ROL has performed.

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How Well Did ROL Perform?

ROL's trailing twelve-month earnings (from 30 November 2018) of UK£2.8m has jumped 19% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16%, indicating the rate at which ROL is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only a result of industry tailwinds, or if Rotala has seen some company-specific growth.

In terms of returns from investment, Rotala has fallen short of achieving a 20% return on equity (ROE), recording 8.1% instead. However, its return on assets (ROA) of 5.7% exceeds the GB Transportation industry of 5.4%, indicating Rotala has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Rotala’s debt level, has increased over the past 3 years from 9.5% to 11%.

What does this mean?

Though Rotala's past data is helpful, it is only one aspect of my investment thesis. While Rotala has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Rotala to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for ROL’s future growth? Take a look at our free research report of analyst consensus for ROL’s outlook.

2. Financial Health: Are ROL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 November 2018. This may not be consistent with full year annual report figures.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.