Lithium Americas (TSX:LAC) ROCE % : -4.78% (As of Sep. 2024)

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What is Lithium Americas 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. Lithium Americas's annualized ROCE % for the quarter that ended in Sep. 2024 was -4.78%.

Lithium Americas ROCE % Historical Data

The historical data trend for Lithium Americas'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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Lithium Americas ROCE % Chart

Lithium Americas Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

-706.99

-1.87

Lithium Americas Quarterly Data
	Dec20	Dec21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial							-0.27	-14.44	-5.82	-4.63	-4.78

Lithium Americas ROCE % Calculation

Lithium Americas'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 )
	=	-4.874	/	( ( (37.818 - 73.643)	+	(589.633 - 32.954) )	/ 2 )
	=	-4.874	/	( (-35.825	+	556.679)	/ 2 )
	=	-4.874	/	260.427
	=	-1.87 %

Lithium Americas's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	-43.636	/	( ( (948.709 - 26.163)	+	(938.693 - 34.074) )	/ 2 )
	=	-43.636	/	( ( 922.546	+	904.619 )	/ 2 )
	=	-43.636	/	913.5825
	=	-4.78 %

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

Lithium Americas (TSX:LAC) 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.

Lithium Americas ROCE % Related Terms

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Lithium Americas Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Americas Corp (TSX:LAC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LAC:USA WUC:Germany

Address

900 West Hastings Street, Suite 300, Vancouver, BC, CAN, V6C 1E5

Website

https://www.lithiumamericas.com

Lithium Americas is a pure-play lithium producer. The firm owns 62% of one resource, Thacker Pass, that is located in northwest Nevada, with automaker General Motors owning the remaining 38%. Thacker Pass recently began construction and is expected to begin production in the mid- to late 2020s. Thacker Pass is one of the largest known lithium resources in the world. The project would be the first clay-based asset to enter production, and we estimate it will be in bottom half of the global cost curve. Management plans to develop Thacker Pass into a fully integrated lithium production site, with downstream refining capabilities on site, and will sell into the lithium chemical market.