Huntington Ingalls Indus's Return on Invested Capital Insights

According to Benzinga Pro, during Q1, Huntington Ingalls Indus HII earned $140.00 million, a 16.67% increase from the preceding quarter. Huntington Ingalls Indus's sales decreased to $2.58 billion, a 3.77% change since Q4. In Q4, Huntington Ingalls Indus earned $120.00 million, whereas sales reached $2.68 billion.

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, Huntington Ingalls Indus posted an ROIC of 2.18%.

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, Huntington Ingalls Indus posted an ROIC of 2.18%.

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 Huntington Ingalls Indus, the positive return on invested capital ratio of 2.18% 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

Huntington Ingalls Indus reported Q1 earnings per share at $3.5/share, which beat analyst predictions of $3.19/share.

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