Everbridge Earnings Perspective: Return On Invested Capital

Everbridge EVBG brought in sales totaling $86.65 million during Q2 according to data provided by Benzinga Pro. However, earnings decreased 50.31%, resulting in a loss of $27.41 million. Everbridge collected $82.21 million in revenue during Q1, but reported earnings showed a $18.24 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 Q2, Everbridge posted an ROIC of -2.61%.

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 Q2, Everbridge posted an ROIC of -2.61%.

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 Everbridge, a negative ROIC ratio of -2.61% suggests that management may not be effectively allocating their capital.Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Analyst Predictions

Everbridge reported Q2 earnings per share at $0.03/share, which beat analyst predictions of $-0.23/share.