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Looking Into Whole Earth Brands's Return On Invested Capital

According to Benzinga Pro, during Q1, Whole Earth Brands (NASDAQ:FREE) earned $2.73 million, a 793.64% increase from the preceding quarter. Whole Earth Brands's sales decreased to $130.59 million, a 1.6% change since Q4.

Benzinga · 06/09/2022 10:13

According to Benzinga Pro, during Q1, Whole Earth Brands (NASDAQ:FREE) earned $2.73 million, a 793.64% increase from the preceding quarter. Whole Earth Brands's sales decreased to $130.59 million, a 1.6% change since Q4. Whole Earth Brands collected $132.71 million in revenue during Q4, but reported earnings showed a $393.00 thousand loss.

Why Is ROIC Significant?

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, Whole Earth Brands posted an ROIC of 0.93%.

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, Whole Earth Brands posted an ROIC of 0.93%.

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 Whole Earth Brands, the positive return on invested capital ratio of 0.93% 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.

Upcoming Earnings Estimate

Whole Earth Brands reported Q1 earnings per share at $0.07/share, which beat analyst predictions of $0.06/share.

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