Benzinga Pro data, Adient (NYSE:ADNT) reported Q2 sales of $3.51 billion. Earnings fell to a loss of $60.00 million, resulting in a 100.0% decrease from last quarter. In Q1, Adient brought in $3.48 billion in sales but lost $30.00 million in earnings.
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 Q2, Adient posted an ROIC of 0.82%.
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 Q2, Adient posted an ROIC of 0.82%.
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 Adient, the positive return on invested capital ratio of 0.82% 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.
Analyst Predictions
Adient reported Q2 earnings per share at $-0.13/share, which did not meet analyst predictions of $-0.06/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
