Looking Into Perdoceo Education's Return On Invested Capital

Pulled from Benzinga Pro data, Perdoceo Education PRDO posted Q4 earnings of $24.47 million, an increase from Q3 of 11.89%. Sales dropped to $159.86 million, a 8.13% decrease between quarters. In Q3, Perdoceo Education earned $27.77 million, and total sales reached $174.00 million.

Why Is ROIC Significant?

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 Q4, Perdoceo Education posted an ROIC of 7.45%.

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 Q4, Perdoceo Education posted an ROIC of 7.45%.

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 Perdoceo Education, the positive return on invested capital ratio of 7.45% 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

Perdoceo Education reported Q4 earnings per share at $0.4/share, which beat analyst predictions of $0.32/share.

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