ACI Worldwide's Return on Invested Capital Insights

Pulled from Benzinga Pro data, ACI Worldwide ACIW posted Q1 earnings of $15.49 million, an increase from Q4 of 85.85%. Sales dropped to $323.08 million, a 30.79% decrease between quarters. In Q4, ACI Worldwide earned $109.47 million, and total sales reached $466.83 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, ACI Worldwide posted an ROIC of 1.2%.

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, ACI Worldwide posted an ROIC of 1.2%.

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 ACI Worldwide, the positive return on invested capital ratio of 1.2% 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

ACI Worldwide reported Q1 earnings per share at $0.28/share, which beat analyst predictions of $0.14/share.

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