Acushnet Holdings's Return on Invested Capital Overview

Acushnet Holdings GOLF brought in sales totaling $420.57 million during Q4 according to data provided by Benzinga Pro. However, earnings decreased 162.2%, resulting in a loss of $24.83 million. In Q3, Acushnet Holdings earned $39.92 million, and total sales reached $521.63 million.

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 Q4, Acushnet Holdings posted an ROIC of 3.6%.

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, Acushnet Holdings posted an ROIC of 3.6%.

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 Acushnet Holdings, the positive return on invested capital ratio of 3.6% 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

Acushnet Holdings reported Q4 earnings per share at $-0.36/share, which did not meet analyst predictions of $-0.29/share.

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