According to Benzinga Pro, during Q1, Computer Task Group (NASDAQ:CTG) earned $2.24 million, a 74.3% increase from the preceding quarter. Computer Task Group's sales decreased to $89.42 million, a 20.44% change since Q4. Computer Task Group reached earnings of $8.72 million and sales of $112.39 million in Q4.
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, Computer Task Group posted an ROIC of 3.35%.
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, Computer Task Group posted an ROIC of 3.35%.
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 Computer Task Group, the positive return on invested capital ratio of 3.35% 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
Computer Task Group reported Q1 earnings per share at $0.16/share, which beat analyst predictions of $0.13/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
