Apyx Medical Corporation (NASDAQ:APYX) specializes in advanced energy solutions for both surgical and cosmetic markets. Their focus lies in developing innovative products that enhance surgical outcomes. Apyx faces strong competition from companies such as Crinetics Pharmaceuticals, IDEAYA Biosciences, Harrow Health, Evelo Biosciences, and IRadimed Corporation, each exhibiting varying levels of capital efficiency.

The financial performance of Apyx Medical raises eyebrows with a concerning negative Return on Invested Capital (ROIC) of -26.00%. This figure starkly contrasts with the Weighted Average Cost of Capital (WACC) of 11.47%. Such a negative ROIC shows that Apyx fails to generate adequate returns to offset its cost of capital. The resulting ROIC to WACC ratio of -2.27 underscores the company’s inefficiency in capital utilization.

Comparatively, Crinetics Pharmaceuticals (CRNX) reports a far worse ROIC of -34.46% versus a WACC of 5.36%, leading to a dismal ROIC to WACC ratio of -6.43. IDEAYA Biosciences (IDYA) does not fare any better with a ROIC of -38.96% and a WACC of 4.76%, yielding a staggering ratio of -8.18. These metrics reveal that both companies also struggle to achieve returns sufficient to cover their cost of capital.

Conversely, Harrow Health (HROW) and IRadimed Corporation (IRMD) demonstrate more favorable metrics. Harrow Health boasts a positive ROIC of 4.90% coupled with a WACC of 6.41%, culminating in a ROIC to WACC ratio of 0.76. In an impressive contrast, IRadimed Corporation shines with a ROIC of 20.24% and a WACC of 8.34%, achieving a robust ROIC to WACC ratio of 2.43. This indicates IRadimed’s effective capital utilization, generating returns significantly above its capital costs.

Evelo Biosciences (EVLO) exemplifies stark inefficiency with a ROIC of -201.37% against a WACC of 9.04%, resulting in a troubling ROIC to WACC ratio of -22.28. In summary, while Apyx Medical Corporation faces substantial challenges in capital efficiency, IRadimed Corporation emerges as a strong performer in this critical area, marking a clear differentiation from its peers.