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Print FormatLamar Advertising Earnings Perspective: Return On Invested Capital
According to Benzinga Pro, during Q1, Lamar Advertising NASDAQ:LAMR earned
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 Q1, Lamar Advertising posted an ROIC of 2.75%.
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 Q1, Lamar Advertising posted an ROIC of 2.75%.
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 Lamar Advertising, the positive return on invested capital ratio of 2.75% 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.
Analyst Predictions
Lamar Advertising reported Q1 earnings per share at
This article was generated by Benzinga's automated content engine and reviewed by an editor.
