Pacira BioSciences's Return on Invested Capital Overview

Pulled from Benzinga Pro data, Pacira BioSciences PCRX posted Q1 earnings of $6.83 million, an increase from Q4 of 233.1%. Sales dropped to $157.99 million, a 0.76% decrease between quarters. In Q4, Pacira BioSciences brought in $159.19 million in sales but lost $5.13 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, Pacira BioSciences posted an ROIC of 1.33%.

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, Pacira BioSciences posted an ROIC of 1.33%.

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 Pacira BioSciences, the positive return on invested capital ratio of 1.33% 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

Pacira BioSciences reported Q1 earnings per share at $0.64/share, which did not meet analyst predictions of $0.83/share.

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