Looking Into Evoqua Water Technologies's Return On Invested Capital

According to Benzinga Pro, during Q2, Evoqua Water Technologies AQUA earned $7.37 million, a 21.12% increase from the preceding quarter. Evoqua Water Technologies also posted a total of $426.73 million in sales, a 16.51% increase since Q1. Evoqua Water Technologies earned $6.09 million, and sales totaled $366.27 million in Q1.

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 Q2, Evoqua Water Technologies posted an ROIC of 1.25%.

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 Q2, Evoqua Water Technologies posted an ROIC of 1.25%.

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 Evoqua Water Technologies, the positive return on invested capital ratio of 1.25% 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

Evoqua Water Technologies reported Q2 earnings per share at $0.2/share, which beat analyst predictions of $0.19/share.

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