State Street Corporation (NYSE:STT) has a ROIC of 0.55% and a WACC of 17.33%, indicating potential inefficiencies in capital utilization.
Zions Bancorporation showcases the highest ROIC to WACC ratio of 0.41 among its peers, suggesting superior capital utilization and growth potential.
The Bank of New York Mellon Corporation demonstrates a more favorable capital use scenario with a ROIC of 3.15% and a WACC of 20.77%, leading to a ratio of 0.1520.
State Street Corporation (NYSE:STT) is a financial services company that provides investment management, servicing, and administration. It operates globally, offering services to institutional investors. In the financial sector, State Street competes with firms 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 efficiency, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. State Street’s ROIC is 0.55%, while its WACC is 17.33%. This results in a ROIC to WACC ratio of 0.03, suggesting that the company may not be using its capital as effectively as it could.
Comparatively, Northern Trust Corporation has a ROIC of 0.81% and a WACC of 22.61%, leading to a slightly better ROIC to WACC ratio of 0.03. The Bank of New York Mellon Corporation shows a more favorable scenario with a ROIC of 3.15% and a WACC of 20.77%, resulting in a ratio of 0.15, indicating more efficient capital use.
The PNC Financial Services Group, with a ROIC of 1.09% and a WACC of 13.31%, achieves a ROIC to WACC ratio of 0.08. Comerica Incorporated, however, has a lower ROIC of 0.43% and a WACC of 14.88%, resulting in a ratio of 0.02, which is less efficient than State Street.
Zions Bancorporation stands out with a ROIC of 7.30% and a WACC of 17.53%, achieving the highest ROIC to WACC ratio of 0.41 among the peers. This indicates that Zions is the most effective in generating returns on its invested capital relative to its cost of capital, suggesting strong potential for growth and efficient capital utilization.
