ExlService Holdings's Return on Invested Capital Insights

According to Benzinga Pro, during Q4, ExlService Holdings EXLS earned $28.30 million, a 6.76% increase from the preceding quarter. ExlService Holdings also posted a total of $295.49 million in sales, a 1.78% increase since Q3. ExlService Holdings earned $26.51 million, and sales totaled $290.32 million in Q3.

What Is Return On Invested Capital?

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, ExlService Holdings posted an ROIC of 4.88%.

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, ExlService Holdings posted an ROIC of 4.88%.

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 ExlService Holdings, the positive return on invested capital ratio of 4.88% 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.

Analyst Predictions

ExlService Holdings reported Q4 earnings per share at $1.21/share, which beat analyst predictions of $1.15/share.

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