GAN's Return on Invested Capital Overview

According to data from Benzinga Pro, during Q2, GAN's GAN reported sales totaled $34.63 million. Despite a 54.29% increase in earnings, the company posted a loss of $1.74 million. In Q1, GAN brought in $27.84 million in sales but lost $3.80 million in earnings.

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, GAN posted an ROIC of -0.69%.

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, GAN posted an ROIC of -0.69%.

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 GAN, a negative ROIC ratio of -0.69% suggests that management may not be effectively allocating their capital.Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Upcoming Earnings Estimate

GAN reported Q2 earnings per share at $-0.07/share, which did not meet analyst predictions of $-0.05/share.

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