Williams Industrial's Return on Invested Capital Overview

According to Benzinga Pro, during Q4, Williams Industrial WLMS earned $815.00 thousand, a 10.43% increase from the preceding quarter. Williams Industrial also posted a total of $79.17 million in sales, a 7.94% increase since Q3. Williams Industrial earned $738.00 thousand, and sales totaled $73.35 million in Q3.

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, Williams Industrial posted an ROIC of 3.08%.

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, Williams Industrial posted an ROIC of 3.08%.

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 Williams Industrial, the positive return on invested capital ratio of 3.08% 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

Williams Industrial reported Q4 earnings per share at $0.03/share, which did not meet analyst predictions of $0.04/share.

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