NuVasive Earnings Perspective: Return On Invested Capital

According to Benzinga Pro, during Q1, NuVasive NUVA earned $19.20 million, a 152.27% increase from the preceding quarter. NuVasive's sales decreased to $290.76 million, a 3.75% change since Q4. In Q4, NuVasive brought in $302.07 million in sales but lost $36.74 million in earnings.

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, NuVasive posted an ROIC of 0.88%.

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, NuVasive posted an ROIC of 0.88%.

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 NuVasive, the positive return on invested capital ratio of 0.88% 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

NuVasive reported Q1 earnings per share at $0.54/share, which beat analyst predictions of $0.39/share.

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