Container Store Group's Return on Invested Capital Insights

According to Benzinga Pro, during Q3, Container Store Group TCS earned $13.69 million, a 49.65% increase from the preceding quarter. Container Store Group's sales decreased to $267.30 million, a 3.13% change since Q2. In Q2, Container Store Group earned $27.20 million, and total sales reached $275.95 million.

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 Q3, Container Store Group posted an ROIC of 3.67%.

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 Q3, Container Store Group posted an ROIC of 3.67%.

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 Container Store Group, the positive return on invested capital ratio of 3.67% 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

Container Store Group reported Q3 earnings per share at $0.28/share, which beat analyst predictions of $0.21/share.

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