.September 6, 2024 4:00:03 PM

In the financial services sector, M&T Bank Corporation (NYSE:MTB) is evaluated alongside its peers on metrics like Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). A lower ROIC/WACC ratio for M&T Bank suggests less efficient capital allocation compared to competitors. On the other hand, Moody’s Corporation (NYSE:MCO) stands out with the highest ROIC/WACC ratio, indicating exceptional capital utilization efficiency. This comparison is crucial for investors to gauge a company’s ability to generate returns higher than its capital costs, highlighting the importance of efficient capital allocation for sustainable growth and profitability.