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Fair Isaac's Return on Invested Capital Insights

According to Benzinga Pro, during Q2, Fair Isaac (NYSE:FICO) earned $104.38 million, a 22.86% increase from the preceding quarter. Fair Isaac also posted a total of $357.19 million in sales, a 10.81% increase since Q1.

Benzinga · 04/29/2022 09:54

According to Benzinga Pro, during Q2, Fair Isaac (NYSE:FICO) earned $104.38 million, a 22.86% increase from the preceding quarter. Fair Isaac also posted a total of $357.19 million in sales, a 10.81% increase since Q1. Fair Isaac earned $84.96 million, and sales totaled $322.36 million in Q1.

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 Q2, Fair Isaac posted an ROIC of 10.56%.

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 Q2, Fair Isaac posted an ROIC of 10.56%.

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 Fair Isaac, the positive return on invested capital ratio of 10.56% 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

Fair Isaac reported Q2 earnings per share at $4.68/share, which beat analyst predictions of $3.73/share.

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