State Street Corporation (NYSE:STT) has a Return on Invested Capital (ROIC) of 0.55% and a Weighted Average Cost of Capital (WACC) of 17.31%, indicating inefficient capital utilization.
Zions Bancorporation stands out with a ROIC of 7.30% and a WACC of 17.47%, showcasing superior capital efficiency with a ROIC to WACC ratio of 0.41.
The PNC Financial Services Group demonstrates effective capital utilization with a ROIC of 1.09% and a WACC of 13.25%, resulting in a ROIC to WACC ratio of 0.08.

State Street Corporation (NYSE:STT) is a financial services company that provides investment management, research, and trading services. It operates globally, offering services to institutional investors. In the financial sector, State Street competes with companies like Northern Trust Corporation, The Bank of New York Mellon Corporation, The PNC Financial Services Group, Comerica Incorporated, and Zions Bancorporation.
In evaluating State Street’s financial performance, the Return on Invested Capital (ROIC) versus the Weighted Average Cost of Capital (WACC) is crucial. State Street’s ROIC is 0.55%, while its WACC is 17.31%, resulting in a ROIC to WACC ratio of 0.03. This ratio indicates that State Street’s returns on invested capital are not covering its cost of capital effectively.
Comparatively, Northern Trust Corporation has a ROIC of 0.81% and a WACC of 30.60%, leading to a ROIC to WACC ratio of 0.02. Although Northern Trust’s ROIC is higher than State Street’s, its higher WACC results in a lower efficiency ratio. The Bank of New York Mellon Corporation shows a ROIC of 0.79% and a WACC of 23.75%, with a ROIC to WACC ratio of 0.03, slightly better than State Street’s.
The PNC Financial Services Group demonstrates a more favorable scenario with a ROIC of 1.09% and a WACC of 13.25%, resulting in a ROIC to WACC ratio of 0.08. This suggests PNC is utilizing its capital more effectively than State Street. Comerica Incorporated, with a ROIC of 0.43% and a WACC of 14.89%, has a ROIC to WACC ratio of 0.02, indicating similar challenges in capital utilization as State Street.
Zions Bancorporation stands out with a ROIC of 7.30% and a WACC of 17.47%, achieving a ROIC to WACC ratio of 0.41. This high ratio suggests Zions is significantly more efficient in using its capital compared to State Street and its other peers, highlighting its superior capital utilization.