iSun Earnings Perspective: Return On Invested Capital

iSun ISUN brought in sales totaling $27.02 million during Q4 according to data provided by Benzinga Pro. However, earnings decreased 74.96%, resulting in a loss of $1.15 million. In Q3, iSun brought in $6.68 million in sales but lost $655.82 thousand 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 Q4, iSun posted an ROIC of -3.17%.

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, iSun posted an ROIC of -3.17%.

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 iSun, a negative ROIC ratio of -3.17% 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.

Analyst Predictions

iSun reported Q4 earnings per share at $0.14/share, which beat analyst predictions of $-0.04/share.

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