Lizhan Environmental (Lizhan Environmental) ROCE % : -9.48% (As of Mar. 2012)

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What is Lizhan Environmental 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. Lizhan Environmental's annualized ROCE % for the quarter that ended in Mar. 2012 was -9.48%.

Lizhan Environmental ROCE % Historical Data

The historical data trend for Lizhan Environmental'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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Lizhan Environmental ROCE % Chart

Lizhan Environmental Annual Data

Trend

Sep08

Sep09

Sep10

Sep11

ROCE %

34.18

45.16

70.81

8.90

Lizhan Environmental Quarterly Data
	Sep08	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Mar12
ROCE %	Get a 7-Day Free Trial							36.04	-3.43	1.57	-1.32	-9.48

Lizhan Environmental ROCE % Calculation

Lizhan Environmental's annualized ROCE % for the fiscal year that ended in Sep. 2011 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2011 )		(A: Sep. 2010 )		(A: Sep. 2011 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2011 )		(A: Sep. 2010 )		(A: Sep. 2011 )
	=	2.249	/	( ( (44.687 - 26.341)	+	(64.554 - 32.361) )	/ 2 )
	=	2.249	/	( (18.346	+	32.193)	/ 2 )
	=	2.249	/	25.2695
	=	8.90 %

Lizhan Environmental's ROCE % of for the quarter that ended in Mar. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2012 )		(Q: Sep. 2011 )		(Q: Mar. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2012 )		(Q: Sep. 2011 )		(Q: Mar. 2012 )
	=	-2.768	/	( ( (64.554 - 32.361)	+	(67.361 - 41.172) )	/ 2 )
	=	-2.768	/	( ( 32.193	+	26.189 )	/ 2 )
	=	-2.768	/	29.191
	=	-9.48 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2012) EBIT data.

Lizhan Environmental (OTCPK:LZENF) 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.

Lizhan Environmental ROCE % Related Terms

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Lizhan Environmental (Lizhan Environmental) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Lizhan Environmental Corp (OTCPK:LZENF) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

No. 716, Qifu Road, Wutong Street, Tongxiang, Zhejiang Province, CHN, 314500

Website

http://gb.lzencorp.com/

Lizhan Environmental Corp manufactures, distributes and markets synthetic leather and other fabrics from recycled leather waste, among other materials. It's products used in the production of residential and office furniture, garments, automotive upholstery products, and various consumer applications. It sells domestically in China and export to distributors and manufacturers in the United States and other foreign countries.

Lizhan Environmental (Lizhan Environmental) Headlines

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