Return on Invested Capital Insights For WillScot

Pulled from Benzinga Pro data, WillScot WSC showed a loss in earnings since Q1, totaling $70.65 million. Sales, on the other hand, increased by 8.41% to $461.10 million during Q2. In Q1, WillScot earned $76.16 million and total sales reached $425.32 million.

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 Q2, WillScot posted an ROIC of 1.72%.

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, WillScot posted an ROIC of 1.72%.

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 WillScot, the positive return on invested capital ratio of 1.72% 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

WillScot reported Q2 earnings per share at $0.16/share, which did not meet analyst predictions of $0.17/share.

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Posted In: EarningsBZI-ROCE
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