Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Benzinga Insights

Looking Into CVR Energy's Return On Invested Capital

Pulled from Benzinga Pro data, CVR Energy (NYSE:CVI) showed a loss in earnings since Q3, totaling $25.00 million. Sales, on the other hand, increased by 12.16% to $2.11 billion during Q4. In Q3, CVR Energy earned $106.00 million and total sales reached $1.88 billion.

What Is ROIC?

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, CVR Energy posted an ROIC of 8.05%.

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, CVR Energy posted an ROIC of 8.05%.

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 CVR Energy, the positive return on invested capital ratio of 8.05% 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

CVR Energy reported Q4 earnings per share at $-0.2/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.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.