Conagra Brands's Return on Invested Capital Insights

Loading...
Loading...

According to Benzinga Pro, during Q2, Conagra Brands CAG earned $275.90 million, a 17.06% increase from the preceding quarter. Conagra Brands also posted a total of $3.06 billion in sales, a 15.3% increase since Q1. Conagra Brands earned $235.70 million, and sales totaled $2.65 billion in Q1.

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 Q2, Conagra Brands posted an ROIC of 2.04%.

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, Conagra Brands posted an ROIC of 2.04%.

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 Conagra Brands, the positive return on invested capital ratio of 2.04% 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

Conagra Brands reported Q2 earnings per share at $0.64/share, which did not meet analyst predictions of $0.68/share.

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

Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsBZI-ROCE
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...