IZEA Worldwide, Inc. (NASDAQ:IZEA) Struggles with Negative Return on Invested Capital
- IZEA Worldwide, Inc. (NASDAQ:IZEA) has a Return on Invested Capital (ROIC) of -24.62%, significantly lower than its Weighted Average Cost of Capital (WACC) of 9.76%, indicating inefficiency in generating sufficient returns.
- Remark Holdings, Inc. (MARK) outperforms with a ROIC of 47.12% and a WACC of 25.15%, showcasing effective capital utilization.
- Peers like Vislink Technologies, Inc. (VISL) and Boxlight Corporation (BOXL) also display negative ROICs, highlighting a common challenge in the sector of not covering the cost of capital.
IZEA Worldwide, Inc. (NASDAQ:IZEA) operates in the influencer marketing and content creation space, connecting brands with content creators. Despite its innovative approach, IZEA faces significant challenges in generating returns on its invested capital. This is evident from its ROIC of -24.62%, which is substantially lower than its WACC of 9.76%. The ROIC to WACC ratio of -2.52 further underscores this underperformance, indicating that IZEA is not effectively utilizing its capital to generate value.
In contrast, Remark Holdings, Inc. (MARK) demonstrates strong performance with a ROIC of 47.12% and a WACC of 25.15%. Its positive ROIC to WACC ratio of 1.87 suggests that MARK is efficiently using its capital to create value, distinguishing itself among its peers. This comparison highlights the importance of effective capital utilization in achieving financial success within the industry.
Other companies like Vislink Technologies, Inc. (VISL) and Boxlight Corporation (BOXL) also struggle with negative ROICs of -141.38% and -30.16%, respectively. Their ROIC to WACC ratios of -13.59 and -1.44 indicate that, similar to IZEA, they are not generating returns sufficient to cover their cost of capital. This underscores the challenges faced by companies in this sector in effectively utilizing their capital.
Inuvo, Inc. (INUV) faces similar challenges with a ROIC of -42.40% and a WACC of 8.55%. Its ROIC to WACC ratio of -4.96 further emphasizes the difficulty in generating returns above the cost of capital. This comparison underscores the importance of effective capital utilization in achieving financial success in the industry.
| Symbol | Price | %chg |
|---|---|---|
| 035420.KS | 235000 | 0.43 |
| 035720.KS | 62900 | -1.75 |
| 0700.HK | 645 | -0.23 |
| 80700.HK | 590 | -0.17 |
IZEA Worldwide, Inc. (NASDAQ:IZEA) Struggles with Capital Utilization Compared to Peers
IZEA Worldwide, Inc. (NASDAQ:IZEA) operates in the influencer marketing and content creation space, connecting brands with content creators. Despite its innovative approach, IZEA's financial metrics reveal challenges in capital utilization.
IZEA's Return on Invested Capital (ROIC) is -24.64%, significantly lower than its Weighted Average Cost of Capital (WACC) of 9.23%. This negative ROIC indicates that IZEA is not generating sufficient returns on its invested capital, leading to a ROIC to WACC ratio of -2.67. This suggests that the company is underperforming in terms of capital efficiency.
In comparison, Remark Holdings, Inc. (MARK) demonstrates a strong performance with a ROIC of 47.12% and a WACC of 25.14%. MARK's ROIC to WACC ratio of 1.87 indicates that it is effectively generating returns that exceed its cost of capital, highlighting its efficient use of capital.
On the other hand, Vislink Technologies, Inc. (VISL) has a ROIC of -141.38% and a WACC of 9.52%, resulting in a ROIC to WACC ratio of -14.85. This indicates significant challenges in capital utilization, as VISL's returns are far below its cost of capital.
Boxlight Corporation (BOXL) and Inuvo, Inc. (INUV) also face difficulties, with ROIC to WACC ratios of -1.03 and -5.33, respectively. Both companies have negative ROICs, indicating that they are not generating adequate returns on their invested capital compared to their costs.
