LVRO (Lavoro) ROCE % : -6.54% (As of Jun. 2024)

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What is Lavoro 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. Lavoro's annualized ROCE % for the quarter that ended in Jun. 2024 was -6.54%.

Lavoro ROCE % Historical Data

The historical data trend for Lavoro'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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Lavoro ROCE % Chart

Lavoro Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

22.26

43.35

21.37

9.87

Lavoro Quarterly Data
	Jun20	Jun21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROCE %	Get a 7-Day Free Trial							-11.51	10.70	34.66	-3.38	-6.54

Lavoro ROCE % Calculation

Lavoro's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	43.204	/	( ( (1550.154 - 1041.365)	+	(1550.05 - 1183.265) )	/ 2 )
	=	43.204	/	( (508.789	+	366.785)	/ 2 )
	=	43.204	/	437.787
	=	9.87 %

Lavoro's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	-27.7	/	( ( (2159.268 - 1678.892)	+	(1550.05 - 1183.265) )	/ 2 )
	=	-27.7	/	( ( 480.376	+	366.785 )	/ 2 )
	=	-27.7	/	423.5805
	=	-6.54 %

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

Lavoro (NAS:LVRO) 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.

Lavoro ROCE % Related Terms

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Lavoro Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Lavoro Ltd (NAS:LVRO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Av. Dr. Cardoso de Melo, 1450, 4th floor, office 401, Sao Paulo, SP, BRA, 04548-005

Website

https://www.lavoroagro.com

Lavoro Ltd operates in the agricultural inputs retail market, with operations spread across Brazil and Colombia, and an emergent agricultural input trading company in Uruguay. The reportable segments of the company include the Brazil Ag Retail, which comprises companies dedicated to the distribution of agricultural inputs such as crop protection, seeds, fertilizers and specialty products, in Brazil; Latam Ag Retail, which includes companies dedicated to the distribution of agricultural inputs outside Brazil (predominantly in Colombia); and the Crop Care. A substantial part of the company's overall revenue is generated from its Brazil Ag Retail segment.