Affirm Holdings, Inc. (NASDAQ:AFRM) is a financial technology company that provides installment loans to consumers at the point of sale. It aims to offer a transparent and flexible alternative to traditional credit. Affirm competes with other fintech companies like Upstart Holdings, Inc. (UPST) and SoFi Technologies, Inc. (SOFI), as well as broader financial service platforms like Robinhood Markets, Inc. (HOOD) and Snowflake Inc. (SNOW).

In evaluating Affirm's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Affirm's ROIC is -3.09%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 18.18%. This negative ROIC indicates that Affirm is not generating enough returns to cover its cost of capital, which is a concern for investors.

Comparing Affirm to its peers, Upstart Holdings has an even lower ROIC of -16.81% against a WACC of 14.98%, resulting in a ROIC to WACC ratio of -1.12. SoFi Technologies, on the other hand, has a ROIC of -0.17% and a WACC of 15.75%, leading to a slightly better ROIC to WACC ratio of -0.01. Both companies, like Affirm, are struggling to generate returns above their cost of capital.

Roblox Corporation and Snowflake Inc. also show negative ROICs of -30.41% and -24.13%, respectively, with WACCs of 11.00% and 9.37%. Their ROIC to WACC ratios are -2.76 and -2.58, indicating significant challenges in capital efficiency. However, Robinhood Markets stands out with a positive ROIC of 17.33% and a WACC of 12.86%, resulting in a ROIC to WACC ratio of 1.35, highlighting its effective capital utilization.

In summary, while Affirm and most of its peers are not covering their cost of capital, Robinhood Markets is an exception. Robinhood's ability to generate returns that exceed its cost of capital makes it a standout in terms of capital efficiency among these companies.