Looking Into Cornerstone Building's Return On Invested Capital

According to Benzinga Pro, during Q2, Cornerstone Building CNR earned $96.81 million, a 75.36% increase from the preceding quarter. Cornerstone Building also posted a total of $1.40 billion in sales, a 10.5% increase since Q1. In Q1, Cornerstone Building earned $55.21 million, and total sales reached $1.27 billion.

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, Cornerstone Building posted an ROIC of 2.75%.

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, Cornerstone Building posted an ROIC of 2.75%.

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 Cornerstone Building, the positive return on invested capital ratio of 2.75% 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

Cornerstone Building reported Q2 earnings per share at $0.67/share, which beat analyst predictions of $0.31/share.