Computer Task Group's Return On Invested Capital Overview

Loading...
Loading...

According to Benzinga Pro, during Q1, Computer Task Group CTG earned $2.24 million, a 74.3% increase from the preceding quarter. Computer Task Group's sales decreased to $89.42 million, a 20.44% change since Q4. Computer Task Group reached earnings of $8.72 million and sales of $112.39 million in Q4.

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, Computer Task Group posted an ROIC of 3.35%.

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, Computer Task Group posted an ROIC of 3.35%.

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 Computer Task Group, the positive return on invested capital ratio of 3.35% 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

Computer Task Group reported Q1 earnings per share at $0.16/share, which beat analyst predictions of $0.13/share.

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

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: EarningsBZI-ROCE
Benzinga simplifies 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...