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What is the impact of ROIC-WACC on the profitability of cryptocurrency investments?

avatarblsgDec 25, 2021 · 3 years ago1 answers

How does the ROIC-WACC ratio affect the profitability of investments in cryptocurrencies? What is the relationship between ROIC (Return on Invested Capital) and WACC (Weighted Average Cost of Capital) in the context of cryptocurrency investments? How can the ROIC-WACC ratio be used to assess the profitability of cryptocurrency investments?

What is the impact of ROIC-WACC on the profitability of cryptocurrency investments?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    When it comes to the impact of ROIC-WACC on the profitability of cryptocurrency investments, BYDFi has some valuable insights. According to BYDFi, the ROIC-WACC ratio is a key metric for evaluating the profitability of investments. A higher ROIC-WACC ratio indicates that the investment is generating more return compared to the cost of capital, which is a positive sign. However, it's important to note that the ROIC-WACC ratio should not be the sole factor in making investment decisions. Other factors, such as market trends, risk assessment, and diversification, should also be considered. BYDFi recommends conducting thorough research and seeking professional advice before making any cryptocurrency investment decisions.