Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) – Ritchie Bros Auctioneers Earnings Outlook: Return on Invested Capital

Benzinga Pro Data Extract, Ritchie Bros. Auctioneers (NYSE:RBA) showed lost revenue since the third quarter, totaling $30.58 million. Sales, on the other hand, rose 9.01% to $359.37 million in the fourth quarter. In the third quarter, Ritchie Bros Auctioneers earned $32.36 million and total sales reached $329.68 million.

Why is ROIC important?

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, Ritchie Bros Auctioneers posted an ROIC of 3.69%.

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, Ritchie Bros Auctioneers posted an ROIC of 3.69%.

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 Ritchie Bros Auctioneers, the positive ROI of 3.69% suggests that management is allocating its capital efficiently. Efficient capital allocation is a positive indicator that a business will achieve more sustainable success and favorable long-term returns.

Estimated future income

Ritchie Bros. Auctioneers reported fourth-quarter earnings of $0.5/share, missing analysts’ forecast of $0.71/share.

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