LLLAF (Leo Lithium) ROC % : -5.48% (As of Dec. 2024)

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What is Leo Lithium ROC %?

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 Dec. 2024 was -5.48%.

As of today (2025-03-15), Leo Lithium's WACC % is 10.47%. Leo Lithium's ROC % is 4.30% (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 ROC % Historical Data

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.

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Leo Lithium ROC % Chart

Leo Lithium Annual Data

Trend

Dec21

Dec22

Dec23

Dec24

ROC %

-8.40

-8.27

3.87

Leo Lithium Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial			-8.91	-9.69	-7.94	-6.96	-5.48

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 - 142.61% )	/	( (101.882	+	197.046)	/ 2 )
=	5.7877163	/	149.464
=	3.87 %

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 Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-19.96 * ( 1 - 57.1% )	/	( (115.233	+	197.046)	/ 2 )
=	-8.56284	/	156.1395
=	-5.48 %

where

	Invested Capital		(Q: Jun. 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	))
=	167.472	-	0.722	-	( 51.517	-	max(0, 21.625	-	166.66	+	51.517	))
=	115.233

	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

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

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 10.47%. Leo Lithium's ROC % is 4.30% (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

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Leo Lithium Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

16 Ventnor Avenue, Level 2, West Perth, WA, AUS, 6005

Website

https://www.leolithium.com

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 JV and exploration for minerals.