How does WACC vs ROIC affect the profitability of digital currencies?

3 answers

• Dec 18, 2021 · 3 years ago
  The WACC and ROIC have a significant impact on the profitability of digital currencies. WACC represents the average cost of capital for a company, including both debt and equity. If the WACC is high, it means that the cost of capital is high, which can reduce the profitability of digital currencies. On the other hand, a high ROIC indicates that the company is generating a higher return on its invested capital, which can increase the profitability of digital currencies. Therefore, a low WACC and a high ROIC are generally favorable for the profitability of digital currencies.
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• Dec 18, 2021 · 3 years ago
  WACC vs ROIC, huh? Well, let me break it down for you. WACC is like the cost of borrowing money for a company, while ROIC is like the return on investment. So, if the WACC is high, it means that the company is paying a lot to borrow money, which can eat into the profitability of digital currencies. On the other hand, if the ROIC is high, it means that the company is making a good return on its investments, which can boost the profitability of digital currencies. So, in short, a low WACC and a high ROIC are good for the profitability of digital currencies.
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• Dec 18, 2021 · 3 years ago
  When it comes to the profitability of digital currencies, the WACC and ROIC play a crucial role. The WACC represents the cost of capital for a company, including both debt and equity. If the WACC is high, it means that the company has to pay more to finance its operations, which can reduce the profitability of digital currencies. On the other hand, the ROIC measures the return on the company's invested capital. A high ROIC indicates that the company is generating a good return on its investments, which can increase the profitability of digital currencies. Therefore, it is important for digital currency companies to keep their WACC low and strive for a high ROIC to maximize profitability.
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