NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) exhibits a significantly low Return on Invested Capital (ROIC) of -137.82% compared to its Weighted Average Cost of Capital (WACC) of 9.35%, indicating inefficiency in generating sufficient returns on its invested capital.
The company’s ROIC to WACC ratio of -14.74 further emphasizes its challenges in capital utilization.
In contrast, BioSig Technologies, Inc. showcases exceptional capital efficiency with an extraordinary ROIC of 12783.39% and a ROIC to WACC ratio of 2151.81.
NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) is a company that focuses on developing and commercializing thin film electrode technology for neurological applications. The company aims to improve the lives of patients with neurological disorders through innovative medical devices. However, when analyzing its financial performance, particularly its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC), NMTC shows some challenges.
NeuroOne’s ROIC is -137.82%, which is significantly lower than its WACC of 9.35%. This negative ROIC indicates that the company is not generating sufficient returns on its invested capital. The ROIC to WACC ratio of -14.74 further highlights the inefficiency in capital utilization, suggesting that the company is spending more on its capital than it is earning back.
In comparison, Biotricity, Inc. (BTCY) has a positive ROIC of 119.16% and a WACC of 20.26%, resulting in a ROIC to WACC ratio of 5.88. This indicates that Biotricity is effectively using its capital to generate returns. BioSig Technologies, Inc. (BSGM) stands out with an extraordinary ROIC of 12783.39% and a ROIC to WACC ratio of 2151.81, showcasing exceptional capital efficiency.
On the other hand, companies like InMed Pharmaceuticals Inc. (INM) and NeuroBo Pharmaceuticals, Inc. (NRBO) also face challenges similar to NMTC, with negative ROICs of -32.11% and -222.06%, respectively. Their ROIC to WACC ratios of -4.20 and -44.41 indicate inefficiencies in capital utilization. Palisade Bio, Inc. (PALI) also struggles with a negative ROIC of -209.50% and a ROIC to WACC ratio of -26.62.
Overall, while NeuroOne Medical Technologies Corporation faces difficulties in generating returns on its invested capital, BioSig Technologies, Inc. demonstrates remarkable efficiency, making it a standout performer among its peers.
