Pulled from Benzinga Pro data, Cognizant Tech Solns (NASDAQ:CTSH) showed a loss in earnings since Q4, totaling $563.00 million. Sales, on the other hand, increased by 1.03% to $4.83 billion during Q1. In Q4, Cognizant Tech Solns earned $576.00 million and total sales reached $4.78 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 Q1, Cognizant Tech Solns posted an ROIC of 5.73%.
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 Q1, Cognizant Tech Solns posted an ROIC of 5.73%.
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 Cognizant Tech Solns, the positive return on invested capital ratio of 5.73% 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
Cognizant Tech Solns reported Q1 earnings per share at $1.08/share, which beat analyst predictions of $1.04/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
