DigitalBridge Posts 36.04% ROIC with 2.78x ROIC/WACC Ratio
DigitalBridge Group reported a ROIC of 36.04% versus a WACC of 12.96%, yielding a 2.78x ROIC/WACC ratio that underscores robust capital efficiency. BrightSpire Capital’s ROIC of -13.16% with a 5.97% WACC contrasts sharply, while Zurn Elkay’s 8.78% ROIC produces a 1.23x ratio.
1. DigitalBridge Capital Efficiency
DigitalBridge Group reported a ROIC of 36.04% against a WACC of 12.96%, producing a ROIC to WACC ratio of 2.78 and demonstrating strong value creation by generating returns significantly above its cost of capital.
2. Contrast with BrightSpire Capital
BrightSpire Capital recorded a negative ROIC of -13.16% alongside a 5.97% WACC, resulting in a -2.20 ratio that indicates capital destruction and highlights potential concerns about its investment strategy.
3. Peer Benchmark Insights
Zurn Elkay Water Solutions achieved an 8.78% ROIC for a 1.23x ratio, while Alignment Healthcare and Hayward Holdings posted ROIC/WACC ratios of 0.28 and 0.66 respectively, underscoring lower capital efficiency across these peers.