SLCO (Sovereign Lithium) ROCE %: -50.00% (As of Dec. 2013)


What is Sovereign Lithium ROCE %?

Sovereign Lithium SLCO ROCE % is -50.00% as of Dec. 2013.

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. Sovereign Lithium's annualized ROCE % for the quarter that ended in Dec. 2013 was -50.00%.

Sovereign Lithium  (OTCPK:SLCO) 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.

Sovereign Lithium ROCE % Related Terms

Sovereign Lithium ROCE % Historical Data

* Premium members only.

The historical data trend for Sovereign Lithium'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.

Sovereign Lithium ROCE % Chart

Sovereign Lithium Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROCE %
Get a 7-Day Free Trial 0.00 0.00 0.00 -147.02 -229.94

Sovereign Lithium Quarterly Data
Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -59.79 -91.65 -109.73 -85.13 -50.00

Sovereign Lithium ROCE % Calculation

Sovereign Lithium's annualized ROCE % for the fiscal year that ended in Dec. 2013 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=-0.576/( ( (0.508 - 0.024) + (0.02 - 0.003) )/ 2 )
=-0.576/( (0.484+0.017)/ 2 )
=-0.576/0.2505
=-229.94 %

Sovereign Lithium's ROCE % of for the quarter that ended in Dec. 2013 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2013 )  (Q: Sep. 2013 )(Q: Dec. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2013 )  (Q: Sep. 2013 )(Q: Dec. 2013 )
=-0.192/( ( (0.84 - 0.089) + (0.02 - 0.003) )/ 2 )
=-0.192/( ( 0.751 + 0.017 )/ 2 )
=-0.192/0.384
=-50.00 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2013) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -50.00% mean?
Sovereign Lithium (SLCO) has a ROCE % of -50.00% as of Dec. 2013.
Is Sovereign Lithium's ROCE % too high?
Sovereign Lithium's current ROCE % is -50.00%.
How does Sovereign Lithium's ROCE % compare to competitors?
Sovereign Lithium's ROCE % of -50.00% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Metals & Mining company?
A good ROCE % depends on the Metals & Mining industry context. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. Sovereign Lithium's current ROCE % is -50.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sovereign Lithium stock overvalued right now?
Sovereign Lithium (SLCO) has a current ROCE % of -50.00%. The current ROCE % is -50.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Sovereign Lithium (SLCO), the current ROCE % is -50.00% as of Dec. 2013. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Sovereign Lithium Business Description

Address 999 18th Street, Suite 3000, Denver, CO, USA, 80202
Sovereign Lithium Inc is a exploration stage mineral exploration and development company.