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Looking Into AMETEK's Return On Invested Capital

By Benzinga Insights

Pulled from Benzinga Pro data, AMETEK (NYSE:AME) posted Q1 earnings of $272.45 million, an increase from Q4 of 3.28%. Sales dropped to $1.46 billion, a 2.99% decrease between quarters. AMETEK earned $281.68 million, and sales totaled $1.50 billion 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, AMETEK posted an ROIC of 3.73%.

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, AMETEK posted an ROIC of 3.73%.

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 AMETEK, the positive return on invested capital ratio of 3.73% 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

AMETEK reported Q1 earnings per share at $1.33/share, which beat analyst predictions of $1.27/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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Dive Deeper:
Looking Into ITT's Return On Invested Capital
Pulled from Benzinga Pro data, ITT (NYSE:ITT) showed a loss in earnings since Q4, totaling $75.30 million. Sales, on the…
Looking Into Cummins's Return On Invested Capital
According to Benzinga Pro, during Q1, Cummins (NYSE:CMI) earned $423.00 million, a 5.75% increase from the preceding quarter. Cummins also…
Looking Into Paramount Global's Return On Invested Capital
Pulled from Benzinga Pro data, Paramount Global (NASDAQ:PARA) posted Q1 earnings of $441.00 million, an increase from Q4 of 79.08%.…
Looking Into Coca-Cola Consolidated's Return On Invested Capital
According to Benzinga Pro, during Q1, Coca-Cola Consolidated (NASDAQ:COKE) earned $93.39 million, a 388.77% increase from the preceding quarter. Coca-Cola…
One subscription that gives you access to news from hundreds of sites
Looking Into Starbucks's Return On Invested Capital
According to Benzinga Pro, during Q2, Starbucks (NASDAQ:SBUX) earned $675.00 million, a 17.29% increase from the preceding quarter. Starbucks's sales…
Denny's's Return on Invested Capital Insights
Pulled from Benzinga Pro data, Denny's (NASDAQ:DENN) posted Q1 earnings of $21.86 million, an increase from Q4 of 49.71%. Sales…
Get all your news in one place