The Western Union's Return on Invested Capital Insights

According to Benzinga Pro, during Q1, The Western Union WU earned $293.30 million, a 73.76% increase from the preceding quarter. The Western Union's sales decreased to $1.16 billion, a 10.04% change since Q4. In Q4, The Western Union brought in $1.28 billion in sales but only earned $168.80 million.

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 Q1, The Western Union posted an ROIC of 8.23%.

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 Q1, The Western Union posted an ROIC of 8.23%.

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 The Western Union, the positive return on invested capital ratio of 8.23% 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

The Western Union reported Q1 earnings per share at $0.51/share, which beat analyst predictions of $0.43/share.

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