American Rare Earths (ASX:ARR) ROCE %: -15.64% (As of Dec. 2025)


ASX:ARR American Rare Earths Ltd ASX:ARR
36 GF Score
Price A$0.33
! 3 Warning Signs
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What is American Rare Earths ROCE %?

American Rare Earths ASX:ARR -7.04% 36 ROCE % is -15.64% as of Dec. 2025. GuruFocus rates ASX:ARR with a GF Score™ of 36/100. The stock has 3 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. American Rare Earths's annualized ROCE % for the quarter that ended in Dec. 2025 was -15.64%.

American Rare Earths  (ASX:ARR) 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.

American Rare Earths ROCE % Related Terms

American Rare Earths ROCE % Historical Data

* Premium members only.

The historical data trend for American 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.

American Rare Earths ROCE % Chart

American Rare Earths Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -26.26 -32.60 -19.89 -20.56 -19.99

American Rare Earths Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -26.53 -20.42 -24.61 -14.88 -15.64
ASX:ARR
36GF Score
American Rare Earths Ltd ASX:ARR
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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American Rare Earths ROCE % Calculation

American 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 )
=-6.334/( ( (34.02 - 0.79) + (31.334 - 1.197) )/ 2 )
=-6.334/( (33.23+30.137)/ 2 )
=-6.334/31.6835
=-19.99 %

American 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 )
=-6.126/( ( (31.334 - 1.197) + (49.034 - 0.83) )/ 2 )
=-6.126/( ( 30.137 + 48.204 )/ 2 )
=-6.126/39.1705
=-15.64 %

(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 -15.64% mean?
American Rare Earths (ASX:ARR) has a ROCE % of -15.64% as of Dec. 2025.
Is American Rare Earths' ROCE % too high?
American Rare Earths' current ROCE % is -15.64%. Overall, American Rare Earths has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does American Rare Earths' ROCE % compare to competitors?
American Rare Earths' ROCE % of -15.64% 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. American Rare Earths's current ROCE % is -15.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Rare Earths stock overvalued right now?
American Rare Earths (ASX:ARR) has a current ROCE % of -15.64%. The current ROCE % is -15.64%. American Rare Earths' overall GF Score™ is 36/100 with 3 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 American Rare Earths (ASX:ARR), the current ROCE % is -15.64% 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.

American Rare Earths Business Description

Address Level 7, 89 York Street, Suite 706, Sydney, NSW, AUS, 2000
American Rare Earths Ltd is an Australian-based company engaged in the exploration and development of rare earth minerals in the United States, focusing on critical materials vital for renewable energy, electric vehicles, national security, and a carbon-reduced future. The company owns several projects, out of which the La Paz project in Arizona and the Halleck Creek project in Wyoming are notable rare earth deposits in the United States with low levels of radioactive elements. Revenue is derived from mineral exploration activities and associated project development. The company has two geographic segments, located in the United States and Australia.
36GF 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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