EOG Resources's Return on Invested Capital Insights

According to Benzinga Pro, during Q4, EOG Resources EOG earned $1.99 billion, a 81.28% increase from the preceding quarter. EOG Resources also posted a total of $6.04 billion in sales, a 26.84% increase since Q3. EOG Resources earned $1.09 billion, and sales totaled $4.76 billion in Q3.

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 Q4, EOG Resources posted an ROIC of 7.61%.

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 Q4, EOG Resources posted an ROIC of 7.61%.

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 EOG Resources, the positive return on invested capital ratio of 7.61% 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.

Upcoming Earnings Estimate

EOG Resources reported Q4 earnings per share at $3.09/share, which did not meet analyst predictions of $3.19/share.

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