Movado Group Earnings Perspective: Return On Invested Capital

According to Benzinga Pro, during Q4, Movado Group MOV earned $31.61 million, a 0.58% increase from the preceding quarter. Movado Group's sales decreased to $205.97 million, a 5.41% change since Q3. Movado Group earned $31.80 million, and sales totaled $217.75 million 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, Movado Group posted an ROIC of 9.11%.

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, Movado Group posted an ROIC of 9.11%.

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 Movado Group, the positive return on invested capital ratio of 9.11% 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

Movado Group reported Q4 earnings per share at $1.32/share, which beat analyst predictions of $0.8/share.

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