Looking Into Clean Harbors's Return On Invested Capital

Pulled from Benzinga Pro data, Clean Harbors CLH showed a loss in earnings since Q4, totaling $45.31 million. Sales, on the other hand, increased by 4.47% to $1.17 billion during Q1. Clean Harbors reached earnings of $48.99 million and sales of $1.12 billion in Q4.

What Is Return On Invested Capital?

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 Q1, Clean Harbors posted an ROIC of 2.11%.

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 Q1, Clean Harbors posted an ROIC of 2.11%.

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 Clean Harbors, the positive return on invested capital ratio of 2.11% 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.

Upcoming Earnings Estimate

Clean Harbors reported Q1 earnings per share at $0.83/share, which beat analyst predictions of $0.73/share.

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