Understanding Capital Efficiency in Biotech: A Look at ADC Therapeutics S.A. and Peers

Capital Efficiency Analysis - ADC Therapeutics S.A. has a Return on Invested Capital (ROIC) of -54.62% and a Weighted Average Cost of Capital (WACC) of 20.44%, indicating significant challenges in capital efficiency [1][5] - Ciena Corporation shows a ROIC of 3.79% against a WACC of 8.87%, resulting in a ROIC to WACC ratio of 0.43, suggesting it is closer to covering its cost of capital [2][5] - COMSovereign Holding Corp. presents a ROIC of -694.61% and a WACC of 15.44%, leading to a ROIC to WACC ratio of -44.99, indicating severe inefficiencies [2][5] - Altair Engineering Inc. has a ROIC of 0.75% with a WACC of 10.57%, resulting in a ROIC to WACC ratio of 0.07, showing challenges similar to ADC Therapeutics [3][5] - ADTRAN Holdings, Inc. has a ROIC of -8.41% and a WACC of 9.27%, leading to a ROIC to WACC ratio of -0.91, indicating it is not generating sufficient returns [3][5] - Sanmina Corporation stands out with a ROIC of 9.69% and a WACC of 9.20%, resulting in a ROIC to WACC ratio of 1.05, making it the most efficient in capital utilization among the listed companies [4][5]