eMagin's Return on Invested Capital Insights

According to Benzinga Pro, during Q4, eMagin EMAN earned $1.14 million, a 10.21% increase from the preceding quarter. eMagin also posted a total of $7.21 million in sales, a 24.73% increase since Q3. In Q3, eMagin earned $1.04 million, and total sales reached $5.78 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, eMagin posted an ROIC of -17.67%.

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 Q4, eMagin posted an ROIC of -17.67%.

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 eMagin, a negative ROIC ratio of -17.67% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Upcoming Earnings Estimate

eMagin reported Q4 earnings per share at $-0.03/share, which did not meet analyst predictions of $-0.03/share.

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