X Financial's Capital Utilization in Comparison with Peers

Company Overview - X Financial (NYSE:XYF) is a financial technology company providing personal finance services in China, including loan facilitation and wealth management services [1] - The company operates in a competitive landscape with peers such as MOGU Inc., Viomi Technology Co., Ltd, Four Seasons Education (Cayman) Inc., and 111, Inc., each exhibiting varying efficiencies in capital utilization [1] Financial Performance - X Financial has a Return on Invested Capital (ROIC) of -4.08% against a Weighted Average Cost of Capital (WACC) of 105.07%, resulting in a ROIC to WACC ratio of -0.0389, indicating inefficiencies in capital utilization and struggles to create value for investors [2][6] - MOGU Inc. has a ROIC of -10.23% and a WACC of 3.46%, leading to a ROIC to WACC ratio of -2.95, suggesting even poorer capital efficiency than X Financial [3] - Viomi Technology Co., Ltd shows a ROIC of 84.77% and a WACC of 4.19%, resulting in a ROIC to WACC ratio of 20.25, indicating strong capital efficiency and making it a standout performer among peers [4][6] - Four Seasons Education (Cayman) Inc. and 111, Inc. have negative ROIC to WACC ratios of -0.12 and -0.03, respectively, indicating challenges in generating returns that cover their cost of capital, though their ratios are less negative than MOGU Inc. [5]