The Lion Electric Co (The Lion Electric Co) ROCE % : -6.28% (As of Mar. 2024)

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What is The Lion Electric Co 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. The Lion Electric Co's annualized ROCE % for the quarter that ended in Mar. 2024 was -6.28%.

The Lion Electric Co ROCE % Historical Data

The historical data trend for The Lion Electric Co'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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The Lion Electric Co ROCE % Chart

The Lion Electric Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-428.98

-13.27

3.17

-13.42

The Lion Electric Co Quarterly Data
	Dec19	May20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial												-9.10	-5.77	-6.89	-29.67	-6.28

The Lion Electric Co ROCE % Calculation

The Lion Electric Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-88.863	/	( ( (710.411 - 81.092)	+	(841.121 - 145.733) )	/ 2 )
	=	-88.863	/	( (629.319	+	695.388)	/ 2 )
	=	-88.863	/	662.3535
	=	-13.42 %

The Lion Electric Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	-43.264	/	( ( (841.121 - 145.733)	+	(806.163 - 123.866) )	/ 2 )
	=	-43.264	/	( ( 695.388	+	682.297 )	/ 2 )
	=	-43.264	/	688.8425
	=	-6.28 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

The Lion Electric Co (NYSE:LEV) 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.

The Lion Electric Co ROCE % Related Terms

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The Lion Electric Co (The Lion Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » The Lion Electric Co (NYSE:LEV) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

70U:Germany LEV:Canada

Address

921 chemin de la Riviere-du-Nord, Saint-Jerome, QC, CAN, J7Y 5G2

Website

https://www.thelionelectric.com

The Lion Electric Co. includes designing, developing, manufacturing and distributing purpose-built all-electric medium and heavy-duty urban vehicles including battery systems, chassis, bus bodies and truck cabins. The Group also distributes truck and bus parts and accessories. The Group has one reportable operating segment, the manufacturing and sales of electric vehicles in Canada and in the United States. Geographically, the majority of revenue is generated from Canada.