Looking Into AerSale's Return On Invested Capital

According to Benzinga Pro, during Q4, AerSale ASLE earned $11.19 million, a 783.68% increase from the preceding quarter. AerSale also posted a total of $116.78 million in sales, a 59.33% increase since Q3. In Q3, AerSale brought in $73.30 million in sales but lost $1.64 million in earnings.

Why Is ROIC Significant?

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, AerSale posted an ROIC of 0.47%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, AerSale posted an ROIC of 0.47%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

For AerSale, the positive return on invested capital ratio of 0.47% 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

AerSale reported Q4 earnings per share at $0.31/share, which beat analyst predictions of $0.16/share.

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