MGM Resorts Intl (NYSE:MGM) brought in sales totaling $2.85 billion during Q1 according to data provided by Benzinga Pro. However, earnings decreased 129.97%, resulting in a loss of $34.79 million. In Q4, MGM Resorts Intl earned $116.09 million, and total sales reached $3.06 billion.
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, MGM Resorts Intl posted an ROIC of 1.23%.
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, MGM Resorts Intl posted an ROIC of 1.23%.
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 MGM Resorts Intl, the positive return on invested capital ratio of 1.23% 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
MGM Resorts Intl reported Q1 earnings per share at $0.01/share, which beat analyst predictions of $-0.07/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
