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IZEA Worldwide, Inc. (NASDAQ:IZEA) Struggles with Negative Return on Invested Capital

  • IZEA Worldwide, Inc. (NASDAQ:IZEA) has a Return on Invested Capital (ROIC) of -24.62%, indicating it is not generating sufficient returns to cover its cost of capital.
  • Remark Holdings, Inc. (MARK) demonstrates a positive ROIC, effectively using its capital to generate value for shareholders.
  • Vislink Technologies, Inc. (VISL), Boxlight Corporation (BOXL), and Inuvo, Inc. (INUV) also face challenges with negative ROICs, similar to IZEA.

IZEA Worldwide, Inc. (NASDAQ:IZEA) operates in the influencer marketing and content creation space, connecting brands with content creators. Despite its innovative approach, IZEA struggles with generating returns on its invested capital.

IZEA's Return on Invested Capital (ROIC) is -24.62%, significantly lower than its Weighted Average Cost of Capital (WACC) of 8.84%. This negative ROIC indicates that IZEA is not generating enough returns to cover its cost of capital, leading to value destruction. The ROIC to WACC ratio of -2.79 further highlights this issue.

In comparison, Remark Holdings, Inc. (MARK) shows a positive ROIC of 37.09%, which is higher than its WACC of 25.14%. This indicates that Remark Holdings is effectively using its capital to generate returns above its cost, creating value for its shareholders. The ROIC to WACC ratio of 1.48 supports this positive outlook.

On the other hand, Vislink Technologies, Inc. (VISL) has a ROIC of -141.38%, which is far below its WACC of 5.61%. This significant negative ROIC suggests substantial value destruction, as the company is not covering its cost of capital. Similarly, Boxlight Corporation (BOXL) and Inuvo, Inc. (INUV) also have negative ROICs, indicating they are not generating sufficient returns on their invested capital.