According to Benzinga Pro, during Q3, EnerSys (NYSE:ENS) earned $36.26 million, a 1.79% increase from the preceding quarter. EnerSys also posted a total of $844.00 million in sales, a 6.65% increase since Q2. EnerSys earned $35.63 million, and sales totaled $791.40 million in Q2.
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 Q3, EnerSys posted an ROIC of 1.96%.
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 Q3, EnerSys posted an ROIC of 1.96%.
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 EnerSys, the positive return on invested capital ratio of 1.96% 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
EnerSys reported Q3 earnings per share at $1.01/share, which beat analyst predictions of $0.99/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
