The article discusses the potential issues with Craftsman Automation (NSE:CRAFTSMAN) regarding its return on capital employed (ROCE) trend, which is a measure of a companys yearly pre-tax profit relative to the capital employed in its business. The companys ROCE has fallen from 14% five years ago, while its capital employed increased by 208%. However, some of this increase could be attributed to recent capital raising completed prior to their latest reporting period. While returns have fallen recently, sales are growing and the business is reinvesting in its operations. However, long-term investors must be optimistic as the stock has returned a significant 143% in the last three years.
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