Quantum Corporation (NASDAQ:QMCO) specializes in data storage and management solutions, offering services and products that help businesses store, manage, and protect their data. In the competitive landscape, Quantum faces peers like Quantum Computing, Inc., PowerFleet, Inc., Rimini Street, Inc., Ribbon Communications Inc., and Usio, Inc., each with varying efficiencies in capital utilization.
Quantum's Return on Invested Capital (ROIC) is 0.87%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 14.52%. This indicates that Quantum is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in how it uses its capital. The ROIC to WACC ratio of 0.06 further highlights this challenge.
In comparison, Quantum Computing, Inc. has a negative ROIC of -33.77% against a WACC of 19.70%, resulting in a ROIC to WACC ratio of -1.71. This suggests even greater inefficiencies in capital utilization compared to Quantum. Similarly, PowerFleet, Inc. and Rimini Street, Inc. also show negative ROICs, indicating they are not generating returns that meet their respective costs of capital.
Ribbon Communications Inc. presents a slightly better scenario with a positive ROIC of 3.03% but still falls short of its WACC of 13.02%, resulting in a ROIC to WACC ratio of 0.23. This indicates that while Ribbon is generating some returns, it is not enough to cover its cost of capital effectively.
Usio, Inc. stands out with a remarkable ROIC of 133.16% compared to its WACC of 11.75%, leading to a ROIC to WACC ratio of 11.33. This indicates that Usio is highly efficient in capital utilization, generating substantial returns that far exceed its cost of capital, making it the most efficient among the peers analyzed.
