Understanding Tenable Holdings, Inc.'s (NASDAQ:TENB) Capital Efficiency in the Cybersecurity Sector

Core Insights - Tenable Holdings, Inc. specializes in vulnerability management within the cybersecurity sector, competing with companies like Rapid7, Varonis Systems, Qualys, Elastic N.V., and Smartsheet [1] Financial Performance - Tenable's Return on Invested Capital (ROIC) is -0.97%, which is below its Weighted Average Cost of Capital (WACC) of 7.20%, indicating insufficient returns to cover capital costs [2] - Rapid7 has a positive ROIC of 1.29% against a WACC of 5.90%, resulting in a ROIC to WACC ratio of 0.22, suggesting better capital efficiency than Tenable, though still not optimal [3] - Varonis Systems demonstrates a stronger performance with a ROIC of 9% and a WACC of 6.26%, leading to a ROIC to WACC ratio of 1.43, indicating superior returns on invested capital [3] - Qualys exhibits the highest ROIC of 27.75% and a WACC of 6.58%, resulting in a ROIC to WACC ratio of 4.21, showcasing the best capital utilization among its peers [4]