Hologic, Inc. (NASDAQ:HOLX) is a leading medical technology company that specializes in women's health, offering a wide range of products and services in diagnostics, breast health, and surgical solutions. The company is in competition with other healthcare giants such as Henry Schein, Inc. (HSIC), DENTSPLY SIRONA Inc. (XRAY), ResMed Inc. (RMD), Laboratory Corporation of America Holdings (LH), and The Cooper Companies, Inc. (COO).
Hologic's Return on Invested Capital (ROIC) is 10.04%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 8.11%. This indicates that Hologic is generating returns above its cost of capital, a positive indicator for investors. The ROIC to WACC ratio of 1.24 further supports this, showing efficient capital utilization.
In comparison, Henry Schein has a ROIC of 4.90% and a WACC of 7.38%, resulting in a ROIC to WACC ratio of 0.66. This suggests that Henry Schein is not generating returns above its cost of capital, indicating less efficient capital use compared to Hologic.
DENTSPLY SIRONA presents a negative ROIC of -5.73% against a WACC of 6.87%, leading to a ROIC to WACC ratio of -0.83. This negative ratio indicates that DENTSPLY SIRONA is not covering its cost of capital, which is concerning for investors.
ResMed Inc. stands out with a ROIC of 20.06% and a WACC of 7.45%, resulting in a ROIC to WACC ratio of 2.69. This high ratio indicates that ResMed is generating significantly higher returns on its invested capital compared to its cost of capital, making it the most efficient in capital utilization among its peers.
