Pulled from Benzinga Pro data, Conn's (NASDAQ:CONN) posted Q4 earnings of $7.56 million, an increase from Q3 of 58.53%. Sales dropped to $402.49 million, a 0.73% decrease between quarters. Conn's earned $18.24 million, and sales totaled $405.46 million in Q3.
What Is Return On Invested Capital?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Conn's posted an ROIC of 2.63%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Conn's posted an ROIC of 2.63%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For Conn's, the positive return on invested capital ratio of 2.63% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Upcoming Earnings Estimate
Conn's reported Q4 earnings per share at $0.33/share, which did not meet analyst predictions of $0.48/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
