The Shyft Group's Return on Invested Capital Insights

According to Benzinga Pro, during Q2, The Shyft Group SHYF earned $5.28 million, a 237.15% increase from the preceding quarter. The Shyft Group also posted a total of $232.19 million in sales, a 12.23% increase since Q1. In Q1, The Shyft Group brought in $206.88 million in sales but lost $3.85 million in earnings.

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 Q2, The Shyft Group posted an ROIC of 2.47%.

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, The Shyft Group posted an ROIC of 2.47%.

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 The Shyft Group, the positive return on invested capital ratio of 2.47% 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

The Shyft Group reported Q2 earnings per share at $0.21/share, which beat analyst predictions of $0.18/share.

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