NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) shows a negative ROIC of -137.82% against a WACC of 8.12%, indicating inefficiency in generating sufficient returns to cover its cost of capital.
Biotricity, Inc. (BTCY) presents a positive financial picture with a ROIC of 138.03% and a WACC of 19.17%, showcasing effective capital utilization.
NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) is a company focused on developing and commercializing innovative medical devices for neurological disorders. The company’s primary goal is to improve patient outcomes through advanced technology. However, when analyzing its financial performance, particularly its Return on Invested Capital (ROIC) compared to its Weighted Average Cost of Capital (WACC), NMTC shows a negative ROIC of -137.82% against a WACC of 8.12%. This indicates that the company is not generating sufficient returns to cover its cost of capital.
In comparison, Biotricity, Inc. (BTCY) presents a more favorable financial picture with a positive ROIC of 138.03% and a WACC of 19.17%. This results in a ROIC to WACC ratio of 7.20, suggesting that Biotricity is effectively utilizing its capital to generate returns above its cost. This is a stark contrast to NMTC’s performance, highlighting the challenges NMTC faces in capital efficiency.
On the other hand, companies like InMed Pharmaceuticals Inc. (INM) and NeuroBo Pharmaceuticals, Inc. (NRBO) also show negative ROICs of -32.11% and -222.06%, respectively. Their ROIC to WACC ratios of -4.51 and -44.41 further emphasize the struggle to generate returns above their cost of capital. This is similar to NMTC’s situation, where the negative ROIC to WACC ratio of -16.97 indicates a need for strategic improvements.
Palisade Bio, Inc. (PALI) also faces challenges with a negative ROIC of -209.50% and a WACC of 7.64%, resulting in a ROIC to WACC ratio of -27.41. This further illustrates the competitive landscape in which NMTC operates, where several companies are struggling to achieve positive capital returns.
