Lawson Products's Return on Invested Capital Overview

According to Benzinga Pro, during Q1, Lawson Products (NASDAQ:LAWS) earned $8.99 million, a 1250.58% increase from the preceding quarter. Lawson Products also posted a total of $117.88 million in sales, a 15.49% increase since Q4. In Q4, Lawson Products brought in $102.07 million in sales but lost $781.00 thousand in earnings.

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, Lawson Products posted an ROIC of 7.63%.

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, Lawson Products posted an ROIC of 7.63%.

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 Lawson Products, the positive return on invested capital ratio of 7.63% 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

Lawson Products reported Q1 earnings per share at $0.57/share, which did not meet analyst predictions of $0.65/share.

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