Looking Into Mission Produce's Return On Invested Capital

According to Benzinga Pro, during Q2, Mission Produce AVO earned $2.40 million, a 117.91% increase from the preceding quarter. Mission Produce also posted a total of $278.10 million in sales, a 28.39% increase since Q1. Mission Produce collected $216.60 million in revenue during Q1, but reported earnings showed a $13.40 million loss.

Why Is ROIC Significant?

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 Q2, Mission Produce posted an ROIC of 0.16%.

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 Q2, Mission Produce posted an ROIC of 0.16%.

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 Mission Produce, the positive return on invested capital ratio of 0.16% 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

Mission Produce reported Q2 earnings per share at $0.04/share, which beat analyst predictions of $0.01/share.

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