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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根据Benzinga Pro的数据,在第二季度,DraftKing纳斯达克(Tmall:DKNG)公布的销售额为4.6619亿美元。收益增长了53.58%,但DraftKings报告的整体亏损仍为2.171亿美元。DraftKings第一季度营收为4.172亿美元,但公布的收益显示亏损4.6769亿美元。
什么是ROIC?
没有背景的收益数据不清楚,很难作为交易决定的依据。投资资本回报率(ROIC)通过衡量企业相对于投资资本的年度税前利润,帮助过滤噪声中的信号。一般来说,较高的ROIC意味着公司的成功增长,也是未来每股收益较高的迹象。在第二季度,DraftKings的ROIC为-19.57%。
重要的是要记住,ROIC评估的是过去的业绩,而不是用作预测工具。这是衡量一家公司近期表现的一个很好的指标,但没有考虑到可能在不久的将来影响收益和销售的因素。
ROIC是比较类似公司资本配置有效性的有力指标。相对较高的ROIC表明,DraftKings的运营效率可能比业内其他公司更高。如果公司以目前的投资资本水平产生高利润,其中一些资金可以再投资于更多资本,这通常会带来更高的回报,并最终实现每股收益(EPS)的增长。
对于DraftKings,负的ROIC比率为-19.57%,这表明管理层可能没有有效地配置他们的资本。有效的资本配置是一个积极的指标,表明一家公司将获得更持久的成功和有利的长期回报;随着时间的推移,糟糕的资本配置可能会拖累公司的业绩。
分析师预测
DraftKings公布第二季度每股收益为-0.29美元,超出分析师预测的-0.83美元。
本文由Benzinga的自动内容引擎生成,并由编辑审阅。
译文内容由第三方软件翻译。
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