Grove Collaborative Holdings, Inc. (GROV) Financial Performance Analysis

Grove Collaborative Holdings, Inc. (NYSE:GROV) is a company that focuses on providing eco-friendly household products. It aims to offer sustainable alternatives to everyday items, promoting a greener lifestyle. However, when it comes to financial performance, GROV faces challenges, particularly in its ability to generate returns on its invested capital.

GROV's Return on Invested Capital (ROIC) is -51.38%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 14.41%. This negative ROIC indicates that the company is not generating enough returns to cover its cost of capital, leading to inefficiencies in capital utilization. The ROIC to WACC ratio of -3.57 further highlights this issue.

In comparison, Comera Life Sciences Holdings, Inc. (CMRA) demonstrates a stark contrast with a ROIC of 1768.56% and a WACC of 4.07%. This results in a ROIC to WACC ratio of 434.29, showcasing an extremely efficient use of capital. CMRA's ability to generate high returns relative to its cost of capital sets it apart from GROV.

Swvl Holdings Corp. (SWVL) also shows effective capital utilization with a ROIC of 82.31% and a WACC of 7.04%, resulting in a positive ROIC to WACC ratio of 11.69. This indicates that SWVL is successfully generating returns that exceed its cost of capital, unlike GROV.

On the other hand, Virax Biolabs Group Limited (VRAX) and Intelligent Living Application Group Inc. (ILAG) share similar challenges with GROV, having negative ROICs of -121.05% and -22.71%, respectively. However, their ROIC to WACC ratios of -10.40 and -2.74 suggest slightly different levels of inefficiency compared to GROV.