Looking Into Telephone and Data's Return On Invested Capital


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Pulled from Benzinga Pro data, Telephone and Data (NYSE:TDS) showed a loss in earnings since Q3, totaling $36.00 million. Sales, on the other hand, increased by 3.31% to $1.37 billion during Q4. Telephone and Data reached earnings of $47.00 million and sales of $1.33 billion in Q3.

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 Q4, Telephone and Data posted an ROIC of 0.98%.

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, Telephone and Data posted an ROIC of 0.98%.

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 Telephone and Data, the positive return on invested capital ratio of 0.98% 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

Telephone and Data reported Q4 earnings per share at $0.11/share, which beat analyst predictions of $0.04/share.

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


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: EarningsBZI-ROCE