ODD) boasts a high Return on Invested Capital (ROIC) of 16.28%, outperforming its competitors in the medical device sector.Insulet Corporation (NASDAQODD) is a prominent player in the medical device industry, primarily known for its innovative insulin management systems. The company focuses on providing solutions for diabetes management, with its flagship product being the Omnipod Insulin Management System. Insulet competes with other companies in the diabetes care and medical device sectors, such as DexCom, Tandem Diabetes Care, and Masimo Corporation.
Insulet's Return on Invested Capital (ROIC) is 16.28%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 10.23%. This results in a ROIC to WACC ratio of 1.59, indicating that Insulet is generating returns well above its cost of capital. This efficiency in capital utilization makes Insulet a standout in its industry.
In comparison, DexCom, Inc. (DXCM) has a ROIC of 10.20% and a WACC of 9.68%, resulting in a ROIC to WACC ratio of 1.05. While DexCom is generating returns above its cost of capital, it is not as efficient as Insulet. Tandem Diabetes Care, Inc. (TNDM) shows a negative ROIC of -13.29% against a WACC of 9.14%, leading to a negative ROIC to WACC ratio of -1.46, indicating inefficiency in capital utilization.
Penumbra, Inc. (PEN) and Masimo Corporation (MASI) also show less favorable ROIC to WACC ratios compared to Insulet. Penumbra has a ROIC of 4.17% and a WACC of 6.36%, resulting in a ratio of 0.66. Masimo's ROIC is -13.26% with a WACC of 8.67%, leading to a ratio of -1.53. These figures suggest that both companies are not generating returns above their cost of capital.
ShockWave Medical, Inc. (SWAV) presents a more favorable comparison with a ROIC of 9.50% and a WACC of 8.26%, resulting in a ROIC to WACC ratio of 1.15. While ShockWave is generating returns above its cost of capital, Insulet still leads with the highest ratio among its peers, highlighting its superior capital efficiency.
