Pulled from Benzinga Pro data, Hyatt Hotels (NYSE:H) showed a loss in earnings since Q4, totaling $58.00 million. Sales, on the other hand, increased by 5.79% to $1.68 billion during Q1. In Q4, Hyatt Hotels earned $294.00 million and total sales reached $1.59 billion.

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 Q1, Hyatt Hotels posted an ROIC of 1.12%.

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 Hyatt Hotels, the positive return on invested capital ratio of 1.12% 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

Hyatt Hotels reported Q1 earnings per share at $0.41/share, which did not meet analyst predictions of $0.48/share.

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