Quantum Corporation (NASDAQ:QMCO) has a ROIC of 0.87%, significantly lower than its WACC of 14.78%, indicating inefficiencies in capital utilization.
Ribbon Communications Inc. shows better capital efficiency with a ROIC of 2.93% compared to its WACC of 9.36%.
Usio, Inc. demonstrates exceptional capital efficiency with a ROIC of 133.16% against a WACC of 11.91%, suggesting strong growth potential.
Quantum Corporation (NASDAQ:QMCO) specializes in data storage and management solutions, competing with firms like Quantum Computing, Inc., PowerFleet, Inc., Rimini Street, Inc., Ribbon Communications Inc., and Usio, Inc. in the technology sector.
In evaluating Quantum’s financial performance, the Return on Invested Capital (ROIC) is a crucial metric. Quantum’s ROIC is 0.87%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 14.78%. This disparity indicates that Quantum is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in how it uses its capital.
Comparatively, Quantum Computing, Inc. has a negative ROIC of -33.77% against a WACC of 17.45%, resulting in a ROIC to WACC ratio of -1.93. This shows even greater inefficiency in capital utilization than Quantum. Similarly, PowerFleet, Inc. and Rimini Street, Inc. also have negative ROICs, indicating they are not generating returns that exceed their costs of capital.
Ribbon Communications Inc. presents a more favorable picture with a ROIC of 2.93% and a WACC of 9.36%, resulting in a ROIC to WACC ratio of 0.31. This suggests that Ribbon is more efficient in using its capital compared to Quantum. However, Usio, Inc. stands out with a ROIC of 133.16% and a WACC of 11.91%, leading to a ROIC to WACC ratio of 11.19, indicating exceptional capital efficiency and strong growth potential.