Cavco Industries's Return on Invested Capital Overview

According to Benzinga Pro, during Q1, Cavco Industries CVCO earned $33.18 million, a 23.29% increase from the preceding quarter. Cavco Industries also posted a total of $330.42 million in sales, a 7.8% increase since Q4. Cavco Industries earned $26.91 million, and sales totaled $306.50 million in Q4.

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 Q1, Cavco Industries posted an ROIC of 4.67%.

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 Q1, Cavco Industries posted an ROIC of 4.67%.

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 Cavco Industries, the positive return on invested capital ratio of 4.67% 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

Cavco Industries reported Q1 earnings per share at $2.92/share, which beat analyst predictions of $2.14/share.