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Benzinga

Surgery Partners Earnings Perspective: Return On Invested Capital

Pulled from Benzinga Pro data, Surgery Partners (NASDAQ:SGRY) posted Q1 earnings of $42.80 million, an increase from Q4 of 0.23%. Sales dropped to $596.20 million, a 2.29% decrease between quarters. Surgery Partners earned $42.90 million, and sales totaled $610.20 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, Surgery Partners posted an ROIC of 1.62%.

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, Surgery Partners posted an ROIC of 1.62%.

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 Surgery Partners, the positive return on invested capital ratio of 1.62% 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

Surgery Partners reported Q1 earnings per share at $-0.09/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.