Looking Into Tango Therapeutics's Return On Invested Capital

Benzinga Pro data, Tango Therapeutics TNGX reported Q4 sales of $5.72 million. Earnings fell to a loss of $22.05 million, resulting in a 12.54% decrease from last quarter. Tango Therapeutics collected $6.79 million in revenue during Q3, but reported earnings showed a $19.59 million loss.

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, Tango Therapeutics posted an ROIC of -5.36%.

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, Tango Therapeutics posted an ROIC of -5.36%.

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 Tango Therapeutics, a negative ROIC ratio of -5.36% 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.

Analyst Predictions

Tango Therapeutics reported Q4 earnings per share at $-0.25/share, which beat analyst predictions of $-0.27/share.

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