Benzinga | Jan 11, 2022 10:17AM EST

VOXX International's Return on Invested Capital Insights

VOXX International (NASDAQ:VOXX) brought in sales totaling $191.87 million during Q3 according to data provided by Benzinga Pro. However, earnings decreased 4187.86%, resulting in a loss of $29.67 million. VOXX International collected $143.11 million in revenue during Q2, but reported earnings showed a $692.00 thousand loss.

What Is ROIC?

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, VOXX International posted an ROIC of -0.1%.

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, VOXX International posted an ROIC of -0.1%.

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 VOXX International, a negative ROIC ratio of -0.1% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Analyst Predictions

VOXX International reported Q3 earnings per share at $0.46/share, which beat analyst predictions of $0.06/share.

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