LCI Industries Earnings Perspective: Return On Invested Capital

According to Benzinga Pro, during Q1, LCI Industries LCII earned $196.18 million, a 138.29% increase from the preceding quarter. LCI Industries also posted a total of $1.65 billion in sales, a 35.61% increase since Q4. In Q4, LCI Industries earned $82.33 million, and total sales reached $1.21 billion.

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, LCI Industries posted an ROIC of 10.59%.

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, LCI Industries posted an ROIC of 10.59%.

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 LCI Industries, the positive return on invested capital ratio of 10.59% 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

LCI Industries reported Q1 earnings per share at $7.71/share, which beat analyst predictions of $4.99/share.

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