LLLAF (Leo Lithium) ROC %: -2.84% (As of Jun. 2025)


What is Leo Lithium ROC %?

Leo Lithium LLLAF ROC % is -2.84% as of Jun. 2025. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Leo Lithium's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -2.84%.

As of today (2026-06-27), Leo Lithium's WACC % is 11.08%. Leo Lithium's ROC % is -5.62% (calculated using TTM income statement data). Leo Lithium earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Leo Lithium  (OTCPK:LLLAF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Leo Lithium's WACC % is 11.08%. Leo Lithium's ROC % is -5.62% (calculated using TTM income statement data). Leo Lithium earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Leo Lithium ROC % Related Terms

Leo Lithium ROC % Historical Data

* Premium members only.

The historical data trend for Leo Lithium's ROC % 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.

Leo Lithium ROC % Chart

Leo Lithium Annual Data
Trend Dec21 Dec22 Dec23 Dec24
ROC %
0.00 -8.38 -8.26 0.00

Leo Lithium Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
ROC % Get a 7-Day Free Trial -9.67 -7.94 -6.96 -5.48 -2.84

Leo Lithium ROC % Calculation

Leo Lithium's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-13.583 * ( 1 - 100% )/( (101.882 + 197.046)/ 2 )
=-0/149.464
=0.00 %

where

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=125.551 - 1.205 - ( 22.464 - max(0, 1.529 - 48.809+22.464))
=101.882

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=371.961 - 4.36 - ( 170.555 - max(0, 5.88 - 347.964+170.555))
=197.046

Leo Lithium's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2025 is calculated as:

ROC % (Q: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Jun. 2025 ))/ count )
=-5.75 * ( 1 - 0% )/( (197.046 + 207.776)/ 2 )
=-5.75/202.411
=-2.84 %

where

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=371.961 - 4.36 - ( 170.555 - max(0, 5.88 - 347.964+170.555))
=197.046

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=246.209 - 3.714 - ( 34.719 - max(0, 3.964 - 221.632+34.719))
=207.776

Note: The Operating Income data used here is two times the semi-annual (Jun. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -2.84% mean?
Leo Lithium (LLLAF) has a ROC % of -2.84% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Leo Lithium and its competitors.
Is Leo Lithium's ROC % too high?
Leo Lithium's current ROC % is -2.84%.
How does Leo Lithium's ROC % compare to LITM and XPL?
Leo Lithium's ROC % of -2.84% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Leo Lithium and its competitors. Leo Lithium's current ROC % is -2.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leo Lithium stock overvalued right now?
Leo Lithium (LLLAF) has a current ROC % of -2.84%. The current ROC % is -2.84%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Leo Lithium (LLLAF), the current ROC % is -2.84% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Leo Lithium Business Description

Address 16 Ventnor Avenue, Level 2, West Perth, WA, AUS, 6005
Leo Lithium Ltd is focused on the development of the Goulamina Lithium Project. The company operates in two segments; The Corporate operation includes the Perth Head Office and Project Team, and The Mali operation includes the development of the Goulamina Project and exploration for minerals.