Looking Into Nautilus's Return On Invested Capital

Pulled from Benzinga Pro data, Nautilus NLS posted Q1 earnings of $17.87 million, an increase from Q1 of 351.44%. Sales dropped to $184.59 million, a 10.42% decrease between quarters. Nautilus collected $206.07 million in revenue during Q1, but reported earnings showed a $7.11 million loss.

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, Nautilus posted an ROIC of 8.5%.

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, Nautilus posted an ROIC of 8.5%.

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 Nautilus, the positive return on invested capital ratio of 8.5% 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

Nautilus reported Q1 earnings per share at $0.43/share, which beat analyst predictions of $0.3/share.