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FMP

Motorsport Games Inc. (NASDAQ:MSGM) Financial Performance Analysis

  • Motorsport Games Inc. has a Return on Invested Capital (ROIC) of 17.83% and a Weighted Average Cost of Capital (WACC) of 13.59%, resulting in a ROIC to WACC ratio of 1.31.
  • Genius Group Limited and Versus Systems Inc. have negative ROIC to WACC ratios, indicating they are not generating sufficient returns to cover their cost of capital.
  • Cosmos Health Inc. and Magic Empire Global Limited also exhibit negative ROIC to WACC ratios, suggesting inefficiencies in capital utilization compared to Motorsport Games Inc.

Motorsport Games Inc. (NASDAQ:MSGM) is a company that specializes in developing and publishing racing video games. It is known for its popular titles that cater to motorsport enthusiasts. The company operates in a competitive industry, with peers like Genius Group Limited, Versus Systems Inc., and others. Understanding its financial performance is crucial for investors.

Motorsport Games Inc. has a Return on Invested Capital (ROIC) of 17.83% and a Weighted Average Cost of Capital (WACC) of 13.59%. This results in a ROIC to WACC ratio of 1.31. A ratio above 1 indicates that the company is generating returns that exceed its cost of capital, which is favorable for investors.

In comparison, Genius Group Limited has a ROIC of -24.56% and a WACC of 22.71%, leading to a ROIC to WACC ratio of -1.08. This negative ratio suggests that Genius Group is not generating sufficient returns to cover its cost of capital, which could be a concern for investors.

Versus Systems Inc. shows a ROIC of -60.78% against a WACC of 13.17%, resulting in a ROIC to WACC ratio of -4.61. This indicates a significant shortfall in returns relative to its cost of capital, highlighting inefficiencies in capital utilization.

Cosmos Health Inc. and Magic Empire Global Limited also exhibit negative ROIC to WACC ratios of -2.49 and -0.48, respectively. These figures suggest that both companies are struggling to generate returns that meet or exceed their cost of capital, unlike Motorsport Games Inc.