Lovisa Holdings (ASX:LOV) ROCE % : 40.44% (As of Dec. 2023)

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What is Lovisa Holdings 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. Lovisa Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 40.44%.

Lovisa Holdings ROCE % Historical Data

The historical data trend for Lovisa Holdings'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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Lovisa Holdings ROCE % Chart

Lovisa Holdings Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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94.41

20.42

22.39

38.24

33.08

Lovisa Holdings Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial													48.70	28.04	51.98	20.31	40.44

Lovisa Holdings ROCE % Calculation

Lovisa Holdings'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 )
	=	105.966	/	( ( (369.285 - 131.885)	+	(518.403 - 115.233) )	/ 2 )
	=	105.966	/	( (237.4	+	403.17)	/ 2 )
	=	105.966	/	320.285
	=	33.08 %

Lovisa Holdings'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 )
	=	163.278	/	( ( (518.403 - 115.233)	+	(539.417 - 135.134) )	/ 2 )
	=	163.278	/	( ( 403.17	+	404.283 )	/ 2 )
	=	163.278	/	403.7265
	=	40.44 %

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

Lovisa Holdings (ASX:LOV) 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.

Lovisa Holdings ROCE % Related Terms

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Lovisa Holdings (ASX:LOV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lovisa Holdings Ltd (ASX:LOV) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LO7:Germany

Address

818-820 Glenferrie Road, Level 1, Hawthorn, Melbourne, VIC, AUS, 3122

Website

https://www.lovisa.com

Lovisa is a global fast fashion retailer specialising in jewellery. A vertically integrated supply chain allows it to develop, source, and merchandise its exclusive products. Its target customer base is millennials, seeking affordable and fashionable, or receiving jewellery as gifts. Lovisa's global network of own-operated and franchised stores span across more than 30 countries. Lovisa's sales growth track record is largely underpinned by global store rollouts. The store format and offering is standardised globally, with stores typically in shopping centres and malls with relatively high foot traffic and sales per square metre. Lovisa also operates online stores and in-store piercing services in all its jurisdictions.

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