Envela's Return on Invested Capital Insights

Pulled from Benzinga Pro data, Envela ELA showed a loss in earnings since Q3, totaling $2.78 million. Sales, on the other hand, increased by 16.98% to $44.10 million during Q4. In Q3, Envela earned $3.11 million and total sales reached $37.70 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, Envela posted an ROIC of 6.66%.

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, Envela posted an ROIC of 6.66%.

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 Envela, the positive return on invested capital ratio of 6.66% 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

Envela reported Q4 earnings per share at $0.1/share, which beat analyst predictions of $0.09/share.

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