Hanesbrands's Return on Invested Capital Insights

According to Benzinga Pro, during Q1, Hanesbrands HBI earned $118.70 million, a 97.73% increase from the preceding quarter. Hanesbrands's sales decreased to $1.58 billion, a 10.05% change since Q4. In Q4, Hanesbrands brought in $1.75 billion in sales but only earned $60.03 million.

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 Q1, Hanesbrands posted an ROIC of 4.0%.

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, Hanesbrands posted an ROIC of 4.0%.

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 Hanesbrands, the positive return on invested capital ratio of 4.0% 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

Hanesbrands reported Q1 earnings per share at $0.34/share, which beat analyst predictions of $0.28/share.

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