Lunnon Metals (ASX:LM8) ROCE % : -61.64% (As of Dec. 2023)

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What is Lunnon Metals 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. Lunnon Metals's annualized ROCE % for the quarter that ended in Dec. 2023 was -61.64%.

Lunnon Metals ROCE % Historical Data

The historical data trend for Lunnon Metals'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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Lunnon Metals ROCE % Chart

Lunnon Metals Annual Data

Trend

Jun21

Jun22

Jun23

ROCE %

-9.17

-17.24

-34.90

Lunnon Metals Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial			-33.10	-13.38	-41.99	-24.08	-61.64

Lunnon Metals ROCE % Calculation

Lunnon Metals'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 )
	=	-17.731	/	( ( (52.235 - 2.578)	+	(54.349 - 2.404) )	/ 2 )
	=	-17.731	/	( (49.657	+	51.945)	/ 2 )
	=	-17.731	/	50.801
	=	-34.90 %

Lunnon Metals'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 )
	=	-32.676	/	( ( (54.349 - 2.404)	+	(56.284 - 2.207) )	/ 2 )
	=	-32.676	/	( ( 51.945	+	54.077 )	/ 2 )
	=	-32.676	/	53.011
	=	-61.64 %

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

Lunnon Metals (ASX:LM8) 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.

Lunnon Metals ROCE % Related Terms

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Lunnon Metals (ASX:LM8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lunnon Metals Ltd (ASX:LM8) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

33 Richardson Street, Suite 10, Level 3, West Perth, WA, AUS, 6005

Website

https://www.lunnonmetals.com.au

Lunnon Metals Ltd is an Australian mineral resource exploration and development company operating in a single segment. It owns a nickel and gold project in Kambala. Western Australia. Kambalda Nickel Project (KNP) is the firms principal exploration project.

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