According to Benzinga Pro, during Q4, La-Z-Boy (NYSE:LZB) earned $57.62 million, a 98.14% increase from the preceding quarter. La-Z-Boy also posted a total of $684.57 million in sales, a 19.77% increase since Q3. La-Z-Boy earned $29.08 million, and sales totaled $571.57 million in Q3.
Why Is ROIC Significant?
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, La-Z-Boy posted an ROIC of 5.09%.
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, La-Z-Boy posted an ROIC of 5.09%.
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 La-Z-Boy, the positive return on invested capital ratio of 5.09% 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
La-Z-Boy reported Q4 earnings per share at $1.07/share, which beat analyst predictions of $0.92/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
