PGT Innovations's Return on Invested Capital Overview

According to Benzinga Pro, during Q1, PGT Innovations PGTI earned $23.83 million, a 41.59% increase from the preceding quarter. PGT Innovations also posted a total of $358.66 million in sales, a 17.81% increase since Q4. In Q4, PGT Innovations earned $16.83 million, and total sales reached $304.44 million.

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, PGT Innovations posted an ROIC of 3.28%.

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, PGT Innovations posted an ROIC of 3.28%.

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 PGT Innovations, the positive return on invested capital ratio of 3.28% 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

PGT Innovations reported Q1 earnings per share at $0.42/share, which beat analyst predictions of $0.37/share.

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