According to Benzinga Pro, during Q4, FTI Consulting (NYSE:FCN) earned $47.50 million, a 38.53% increase from the preceding quarter. FTI Consulting's sales decreased to $774.43 million, a 0.18% change since Q3. FTI Consulting earned $77.27 million, and sales totaled $775.87 million in Q3.

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 Q4, FTI Consulting posted an ROIC of 4.48%.

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 FTI Consulting, the positive return on invested capital ratio of 4.48% 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

FTI Consulting reported Q4 earnings per share at $1.52/share, which beat analyst predictions of $1.35/share.

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