Acushnet Holdings (NYSE:GOLF) had sales totaling $420.57 million during the fourth quarter according to data provided by Benzinga Pro. However, profits decreased by 162.2% resulting in a loss of $24.83 million. In the third quarter, Acushnet Holdings earned $39.92 million and total sales reached $521.63 million.
What is ROIC?
Return on invested capital is a measure of the annual pre-tax profit relative to the capital invested by a business. Changes in profits and sales indicate changes in a company’s ROIC. A higher return on investment is generally indicative of successful business growth and is a sign of higher earnings per share in the future. A low or negative ROIC suggests otherwise. In the fourth quarter, Acushnet Holdings posted an ROIC of 3.6%.
Keep in mind that while ROI is a good measure of a company’s recent performance, it’s not a very reliable indicator of a company’s profits or sales in the near future.
Return on invested capital is a measure of the annual pre-tax profit relative to the capital invested by a business. Changes in profits and sales indicate changes in a company’s ROIC. A higher return on investment is generally indicative of successful business growth and is a sign of higher earnings per share in the future. A low or negative ROIC suggests otherwise. In the fourth quarter, Acushnet Holdings posted an ROIC of 3.6%.
Keep in mind that while ROI is a good measure of a company’s recent performance, it’s not a very reliable indicator of a company’s profits or sales in the near future.
For Acushnet Holdings, the positive ROI of 3.6% suggests that management is allocating its capital efficiently. Efficient capital allocation is a positive indicator that a company will achieve more sustainable success and favorable long-term returns.
Analyst predictions
Acushnet Holdings reported fourth-quarter earnings per share of -$0.36/share, which fell short of analysts’ forecast of -$0.29/share.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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