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Looking Into Antares Pharma's Return On Invested Capital

Author: Benzinga Insights | June 08, 2022 09:55am

Benzinga Pro data, Antares Pharma (NASDAQ:ATRS) reported Q1 sales of $41.56 million. Earnings fell to a loss of $2.32 million, resulting in a 107.1% decrease from last quarter. Antares Pharma earned $32.68 million, and sales totaled $48.73 million in Q4.

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, Antares Pharma posted an ROIC of -1.44%.

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, Antares Pharma posted an ROIC of -1.44%.

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 Antares Pharma, a negative ROIC ratio of -1.44% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Analyst Predictions

Antares Pharma reported Q1 earnings per share at $-0.01/share, which did not meet analyst predictions of $0.0/share.

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

Posted In: ATRS

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