Australian Rare Earths (ASX:AR3) ROCE %: -22.84% (As of Dec. 2025)


ASX:AR3 Australian Rare Earths Ltd ASX:AR3
34 GF Score
Price A$0.11
! 2 Warning Signs
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What is Australian Rare Earths ROCE %?

Australian Rare Earths ASX:AR3 -8.70% 34 ROCE % is -22.84% as of Dec. 2025. GuruFocus rates ASX:AR3 with a GF Score™ of 34/100. The stock has 2 warning signs investors should review.

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. Australian Rare Earths's annualized ROCE % for the quarter that ended in Dec. 2025 was -22.84%.

Australian Rare Earths  (ASX:AR3) 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.

Australian Rare Earths ROCE % Related Terms

Australian Rare Earths ROCE % Historical Data

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The historical data trend for Australian Rare Earths'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.

Australian Rare Earths ROCE % Chart

Australian Rare Earths Annual Data
Trend Jun22 Jun23 Jun24 Jun25
ROCE %
-31.74 -12.45 -16.36 -16.17

Australian Rare Earths Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.74 -17.02 -15.85 -17.61 -22.84
ASX:AR3
34GF Score
Australian Rare Earths Ltd ASX:AR3
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Australian Rare Earths ROCE % Calculation

Australian Rare Earths's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=-3.701/( ( (23.765 - 1.174) + (25.078 - 1.883) )/ 2 )
=-3.701/( (22.591+23.195)/ 2 )
=-3.701/22.893
=-16.17 %

Australian Rare Earths's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=-5.226/( ( (25.078 - 1.883) + (24.412 - 1.853) )/ 2 )
=-5.226/( ( 23.195 + 22.559 )/ 2 )
=-5.226/22.877
=-22.84 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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 ROCE % →
What does a ROCE % of -22.84% mean?
Australian Rare Earths (ASX:AR3) has a ROCE % of -22.84% as of Dec. 2025.
Is Australian Rare Earths' ROCE % too high?
Australian Rare Earths' current ROCE % is -22.84%. Overall, Australian Rare Earths has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Australian Rare Earths' ROCE % compare to competitors?
Australian Rare Earths' ROCE % of -22.84% 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 ROCE % for a Metals & Mining company?
A good ROCE % depends on the Metals & Mining industry context. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. Australian Rare Earths's current ROCE % is -22.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Rare Earths stock overvalued right now?
Australian Rare Earths (ASX:AR3) has a current ROCE % of -22.84%. The current ROCE % is -22.84%. Australian Rare Earths' overall GF Score™ is 34/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Australian Rare Earths (ASX:AR3), the current ROCE % is -22.84% as of Dec. 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.

Australian Rare Earths Business Description

Other Exchanges 998:Germany
Address 111 Gawler Place, Level 10, Adelaide, SA, AUS, 5000
Australian Rare Earths Ltd is engaged in rare earth exploration and development. Its Koppamurra Project is a frontier ionic clay, rare earth opportunity in South Australia and Victoria.
34GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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