Owens-Corning's Return on Invested Capital Insights

Owens-Corning's Return on Invested Capital Insights

According to Benzinga Pro, during Q2, Owens-Corning OC earned $343.00 million, a 11.73% increase from the preceding quarter. Owens-Corning also posted a total of $2.60 billion in sales, a 10.87% increase since Q1. In Q1, Owens-Corning earned $307.00 million, and total sales reached $2.35 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, Owens-Corning posted an ROIC of 6.03%.

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, Owens-Corning posted an ROIC of 6.03%.

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 Owens-Corning, the positive return on invested capital ratio of 6.03% 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

Owens-Corning reported Q2 earnings per share at $3.83/share, which beat analyst predictions of $3.32/share.

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

Posted In: BZI-ROCEEarnings