Lithium Australia (ASX:LITCB) ROCE % : -62.73% (As of Dec. 2023)

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What is Lithium Australia 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. Lithium Australia's annualized ROCE % for the quarter that ended in Dec. 2023 was -62.73%.

Lithium Australia ROCE % Historical Data

The historical data trend for Lithium Australia'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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Lithium Australia ROCE % Chart

Lithium Australia Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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-28.19

-27.30

-78.89

-113.99

-48.64

Lithium Australia Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															-38.69	-146.69	-17.06	-55.12	-62.73

Lithium Australia ROCE % Calculation

Lithium Australia'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 )
	=	-7.389	/	( ( (21.927 - 9.537)	+	(25.083 - 7.093) )	/ 2 )
	=	-7.389	/	( (12.39	+	17.99)	/ 2 )
	=	-7.389	/	15.19
	=	-48.64 %

Lithium Australia'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 )
	=	-8.996	/	( ( (25.083 - 7.093)	+	(18.786 - 8.095) )	/ 2 )
	=	-8.996	/	( ( 17.99	+	10.691 )	/ 2 )
	=	-8.996	/	14.3405
	=	-62.73 %

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

Lithium Australia (ASX:LITCB) 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.

Lithium Australia ROCE % Related Terms

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Lithium Australia (ASX:LITCB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Australia Ltd (ASX:LITCB) » Definitions » ROCE %

Comparable Companies

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LMMFF:USA 3MW:Germany LIT:Australia

Address

677 Murray Street, Level 1, Perth, WA, AUS, 6005

Website

https://www.lithium-au.com

Lithium Australia Ltd is engaged in the acquisition, mineral exploration, and process development, for the extraction and recovery of lithium. Its reportable segment includes Battery Recycling, Battery Materials, Chemicals, and Raw Materials. The majority of its revenue derives from the Battery Recycling segment which includes research and development of processing technology for mixed-battery recycling, as well as the sale of recovered energy metals.

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