Benzinga | Oct 28, 2021 12:00PM EDT

PBF Energy Earnings Perspective: Return On Invested Capital

Pulled from Benzinga Pro data, PBF Energy (NYSE:PBF) showed a loss in earnings since Q2, totaling $101.10 million. Sales, on the other hand, increased by 4.19% to $7.19 billion during Q3. PBF Energy reached earnings of $147.50 million and sales of $6.90 billion in Q2.

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 Q3, PBF Energy posted an ROIC of 2.32%.

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 Q3, PBF Energy posted an ROIC of 2.32%.

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 PBF Energy, the positive return on invested capital ratio of 2.32% 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

PBF Energy reported Q3 earnings per share at $0.12/share, which beat analyst predictions of $-0.07/share.