Desert Metals (ASX:DM1) ROCE % : -10.44% (As of Dec. 2023)

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What is Desert Metals ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Desert Metals's annualized ROCE % for the quarter that ended in Dec. 2023 was -10.44%.

Desert Metals ROCE % Historical Data

The historical data trend for Desert Metals's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Desert Metals ROCE % Chart

Desert Metals Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

ROCE %

-21.57

-11.24

-10.54

Desert Metals Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial			-14.49	-10.65	-11.16	-8.84	-10.44

Desert Metals ROCE % Calculation

Desert Metals's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-0.88	/	( ( (7.686 - 0.184)	+	(9.485 - 0.283) )	/ 2 )
	=	-0.88	/	( (7.502	+	9.202)	/ 2 )
	=	-0.88	/	8.352
	=	-10.54 %

Desert Metals's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	-0.944	/	( ( (9.485 - 0.283)	+	(9.05 - 0.16) )	/ 2 )
	=	-0.944	/	( ( 9.202	+	8.89 )	/ 2 )
	=	-0.944	/	9.046
	=	-10.44 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Desert Metals (ASX:DM1) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Desert Metals ROCE % Related Terms

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Desert Metals (ASX:DM1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Desert Metals Ltd (ASX:DM1) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

59 Parry Street, Level 3, Perth, WA, AUS, 6000

Website

https://www.desertmetals.com.au

Desert Metals Ltd is a mineral exploration company. The company explores nickel and copper. It is focused on developing the Narryer Project.

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