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GBank Financial Holdings Inc. (OTC:GBFH) Outperforms Peers in Capital Efficiency

- (Last modified: Jun 30, 2025 1:30 PM)

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  • GBank Financial Holdings Inc. (OTC:GBFH) boasts a Return on Invested Capital (ROIC) of 9.85%, significantly higher than its Weighted Average Cost of Capital (WACC) of 4.68%, indicating efficient capital utilization.
  • FineMark Holdings, Inc. (FNBT) presents a negative ROIC, further emphasizing GBFH's standout efficiency in the financial sector.

GBank Financial Holdings Inc. (OTC:GBFH) is a financial institution that focuses on providing banking services. In evaluating GBank Financial Holdings Inc., the Return on Invested Capital (ROIC) is a crucial metric. GBFH boasts a ROIC of 9.85%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 4.68%. This results in a ROIC to WACC ratio of 2.11, indicating that the company is generating returns well above its cost of capital. This is a positive indicator for investors, as it suggests that GBFH is using its capital efficiently to generate profits.

FineMark Holdings, Inc. (FNBT) presents an even more concerning picture with a negative ROIC of -17.51% and a WACC of 4.15%, leading to a ROIC to WACC ratio of -4.22. This negative ratio suggests that FNBT is not only failing to generate returns above its cost of capital but is also incurring losses.

Overall, GBank Financial Holdings Inc. stands out among its peers with its strong ROIC to WACC ratio of 2.11. This indicates that GBFH is the most efficient in generating returns on its invested capital compared to its cost of capital. For investors, this efficiency in capital utilization makes GBFH an attractive option, as it demonstrates the company's financial health and operational efficiency.

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