Caris Life Sciences Posts 14.17% ROIC Versus 9.41% WACC (1.51 Ratio)
CAI•Caris Life Sciences delivered a 14.17% ROIC versus a 9.41% WACC, generating a 1.51x ROIC/WACC ratio that translates to $1.51 in value per dollar invested. This significant capital efficiency outperforms most peers and underpins its potential for sustained growth.
1. Caris Life Sciences' Capital Efficiency
Caris Life Sciences achieved a 14.17% return on invested capital compared with a 9.41% weighted average cost of capital, indicating the company generates a substantial surplus over its capital costs. This 4.76 percentage point gap highlights the company’s ability to create value for shareholders by efficiently allocating resources.
2. ROIC to WACC Ratio Implications
The 1.51 ROIC/WACC ratio means Caris generates $1.51 in economic value for every dollar of capital invested, underscoring robust operational efficiency. Such a ratio supports the case for reinvestment and signals strong prospects for sustained growth and profitability.
3. Industry Comparison
Brady Corporation leads the peer group with a 2.00 ROIC/WACC ratio, while Benchmark Electronics posts a 3.71% ROIC against a 9.47% WACC and Lionheart Holdings records a negative ROIC of -0.35%. These comparisons illustrate Caris Life Sciences’ superior position in capital efficiency within the healthcare technology sector.
