Flowers Foods's Return on Invested Capital Insights

Flowers Foods's Return on Invested Capital Insights

According to Benzinga Pro, during Q2, Flowers Foods FLO earned $73.92 million, a 35.78% increase from the preceding quarter. Flowers Foods's sales decreased to $1.02 billion, a 21.89% change since Q1. In Q1, Flowers Foods earned $115.11 million, and total sales reached $1.30 billion.

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, Flowers Foods posted an ROIC of 3.18%.

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, Flowers Foods posted an ROIC of 3.18%.

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 Flowers Foods, the positive return on invested capital ratio of 3.18% 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

Flowers Foods reported Q2 earnings per share at $0.32/share, which beat analyst predictions of $0.28/share.

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

Posted In: BZI-ROCEEarnings