The Marygold Companies, Inc. (MGLD) faces significant financial challenges with a Return on Invested Capital (ROIC) of -21.40% and a Weighted Average Cost of Capital (WACC) of 7.47%, indicating inefficiency in generating returns on investments.
Direct Digital Holdings, Inc. (DRCT) and AgriFORCE Growing Systems Ltd. (AGRI) also struggle with negative ROIC to WACC ratios, highlighting similar financial inefficiencies.
NeuroSense Therapeutics Ltd. (NRSN) and Hour Loop, Inc. (HOUR) demonstrate positive capital utilization, with NRSN showing exceptionally high efficiency.
The Marygold Companies, Inc. (NYSE:MGLD) operates in various sectors, including investment fund management, beauty products, food products, and security alarm systems. Despite its diverse business portfolio, MGLD faces financial challenges. Its Return on Invested Capital (ROIC) is -21.40%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 7.47%. This results in a ROIC to WACC ratio of -2.87, indicating inefficiency in generating returns on investments.
When comparing MGLD’s performance with its peers, Direct Digital Holdings, Inc. (DRCT) shows a more concerning financial position with a ROIC of -52.92% and a WACC of 14.22%, leading to a ROIC to WACC ratio of -3.72. This suggests that DRCT is also struggling to generate returns that cover its cost of capital, similar to MGLD.
NeuroSense Therapeutics Ltd. (NRSN) stands out positively among the peers with a ROIC of 406.38% and a WACC of 13.30%, resulting in a ROIC to WACC ratio of 30.56. This indicates that NRSN is highly efficient in utilizing its capital, generating returns far exceeding its cost of capital, unlike MGLD.
Kidpik Corp. (PIK) has a ROIC of -0.14% and a WACC of 14.19%, leading to a ROIC to WACC ratio of -0.01. This shows that PIK is close to breaking even in terms of capital efficiency, but still falls short of covering its cost of capital, similar to MGLD’s situation.
AgriFORCE Growing Systems Ltd. (AGRI) and Hour Loop, Inc. (HOUR) present contrasting scenarios. AGRI has a ROIC of -192.54% and a WACC of 125.19%, resulting in a ROIC to WACC ratio of -1.54, indicating severe inefficiency. In contrast, HOUR has a positive ROIC of 15.81% and a WACC of 8.94%, with a ROIC to WACC ratio of 1.77, showing effective capital utilization.
