Looking Into DraftKings' Return On Invested Capital
Looking Into DraftKings' Return On Invested Capital
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According to Benzinga Pro data, during Q2, DraftKings (NASDAQ:DKNG) posted sales of $466.19 million. Earnings were up 53.58%, but DraftKings still reported an overall loss of $217.10 million. DraftKings collected $417.20 million in revenue during Q1, but reported earnings showed a $467.69 million loss.
What Is ROIC?
Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q2, DraftKings posted an ROIC of -19.57%.
It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.
ROIC is a powerful metric for comparing the effectiveness of capital allocation for similar companies. A relatively high ROIC shows DraftKings is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of invested capital, some of that money can be reinvested in more capital which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.
For DraftKings, a negative ROIC ratio of -19.57% 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
DraftKings reported Q2 earnings per share at $-0.29/share, which beat analyst predictions of $-0.83/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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根據Benzinga Pro的數據,在第二季度,DraftKing納斯達克(Tmall:DKNG)公佈的銷售額為4.6619億美元。收益增長了53.58%,但DraftKings報告的整體虧損仍為2.171億美元。DraftKings第一季度營收為4.172億美元,但公佈的收益顯示虧損4.6769億美元。
什麼是ROIC?
沒有背景的收益數據不清楚,很難作為交易決定的依據。投資資本回報率(ROIC)通過衡量企業相對於投資資本的年度税前利潤,幫助過濾噪聲中的信號。一般來説,較高的ROIC意味着公司的成功增長,也是未來每股收益較高的跡象。在第二季度,DraftKings的ROIC為-19.57%。
重要的是要記住,ROIC評估的是過去的業績,而不是用作預測工具。這是衡量一家公司近期表現的一個很好的指標,但沒有考慮到可能在不久的將來影響收益和銷售的因素。
ROIC是比較類似公司資本配置有效性的有力指標。相對較高的ROIC表明,DraftKings的運營效率可能比業內其他公司更高。如果公司以目前的投資資本水平產生高利潤,其中一些資金可以再投資於更多資本,這通常會帶來更高的回報,並最終實現每股收益(EPS)的增長。
對於DraftKings,負的ROIC比率為-19.57%,這表明管理層可能沒有有效地配置他們的資本。有效的資本配置是一個積極的指標,表明一家公司將獲得更持久的成功和有利的長期回報;隨着時間的推移,糟糕的資本配置可能會拖累公司的業績。
分析師預測
DraftKings公佈第二季度每股收益為-0.29美元,超出分析師預測的-0.83美元。
本文由Benzinga的自動內容引擎生成,並由編輯審閲。
譯文內容由第三人軟體翻譯。
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