CNX Resources's Return on Invested Capital Overview

According to Benzinga Pro, during Q2, CNX Resources CNX earned $33.36 million, a 103.61% increase from the preceding quarter. CNX Resources's sales decreased to $473.00 million, a 0.21% change since Q1. In Q1, CNX Resources brought in $474.00 million in sales but lost $922.94 million in earnings.

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, CNX Resources posted an ROIC of 15.58%.

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, CNX Resources posted an ROIC of 15.58%.

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 CNX Resources, the positive return on invested capital ratio of 15.58% 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

CNX Resources reported Q2 earnings per share at $0.61/share, which did not meet analyst predictions of $0.81/share.

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