Coty's Return on Invested Capital Overview

According to Benzinga Pro, during Q3, Coty COTY earned $55.00 million, a 79.14% increase from the preceding quarter. Coty's sales decreased to $1.19 billion, a 24.85% change since Q2. Coty earned $263.70 million, and sales totaled $1.58 billion in Q2.

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 Q3, Coty posted an ROIC of 2.95%.

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, Coty posted an ROIC of 2.95%.

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 Coty, the positive return on invested capital ratio of 2.95% 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

Coty reported Q3 earnings per share at $0.03/share, which beat analyst predictions of $0.01/share.

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