According to Compounding Quality (@QCompounding), a project where the Return on Invested Capital (ROIC) is lower than the Weighted Average Cost of Capital (WACC) results in a net loss, while a higher ROIC than WACC yields solid returns. Specifically, Company A earns a 5% ROIC but pays a 10% WACC, losing money, whereas Company B earns 20% ROIC, outperforming its 10% WACC and generating strong profits. For traders, this highlights the importance of analyzing a company's ROIC versus WACC ratio as a key metric for profitability, which can directly impact stock valuations and, by extension, crypto market sentiment due to cross-market capital flows and risk appetite. (Source: Compounding Quality on Twitter, May 20, 2025)