Sally Beauty Holdings's Return on Invested Capital Overview

According to Benzinga Pro, during Q2, Sally Beauty Holdings SBH earned $46.81 million, a 32.0% increase from the preceding quarter. Sally Beauty Holdings's sales decreased to $911.39 million, a 7.03% change since Q1. In Q1, Sally Beauty Holdings earned $68.84 million, and total sales reached $980.25 million.

What Is Return On Invested Capital?

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 Q2, Sally Beauty Holdings posted an ROIC of 5.23%.

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 Q2, Sally Beauty Holdings posted an ROIC of 5.23%.

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 Sally Beauty Holdings, the positive return on invested capital ratio of 5.23% 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

Sally Beauty Holdings reported Q2 earnings per share at $0.47/share, which did not meet analyst predictions of $0.51/share.

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