B&G Foods's Return on Invested Capital Overview

Pulled from Benzinga Pro data, B&G Foods BGS posted Q2 earnings of $59.12 million, an increase from Q1 of 4.62%. Sales dropped to $464.38 million, a 8.07% decrease between quarters. B&G Foods earned $61.98 million, and sales totaled $505.13 million in Q1.

What Is Return On Invested Capital?

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q2, B&G Foods posted an ROIC of 1.87%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q2, B&G Foods posted an ROIC of 1.87%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

For B&G Foods, the positive return on invested capital ratio of 1.87% 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

B&G Foods reported Q2 earnings per share at $0.41/share, which did not meet analyst predictions of $0.49/share.