RF Industries's Return on Invested Capital Insights

According to Benzinga Pro, during Q2, RF Industries RFIL earned $503.00 thousand, a 281.59% increase from the preceding quarter. RF Industries also posted a total of $21.50 million in sales, a 27.11% increase since Q1. RF Industries collected $16.92 million in revenue during Q1, but reported earnings showed a $277.00 thousand loss.

Why Is ROIC Significant?

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, RF Industries posted an ROIC of 1.31%.

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, RF Industries posted an ROIC of 1.31%.

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 RF Industries, the positive return on invested capital ratio of 1.31% 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

RF Industries reported Q2 earnings per share at $0.13/share, which beat analyst predictions of $0.07/share.

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