Largo (TSX:LGO) ROCE % : -13.47% (As of Sep. 2024)

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What is Largo 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. Largo's annualized ROCE % for the quarter that ended in Sep. 2024 was -13.47%.

Largo ROCE % Historical Data

The historical data trend for Largo'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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Largo ROCE % Chart

Largo Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-3.38

3.34

12.51

1.98

-7.71

Largo Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															-15.11	-14.71	-20.23	-25.37	-13.47

Largo ROCE % Calculation

Largo'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 )
	=	-34.112	/	( ( (483.286 - 52.945)	+	(511.983 - 56.958) )	/ 2 )
	=	-34.112	/	( (430.341	+	455.025)	/ 2 )
	=	-34.112	/	442.683
	=	-7.71 %

Largo'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 )
	=	-51.192	/	( ( (461.913 - 72.891)	+	(465.573 - 94.775) )	/ 2 )
	=	-51.192	/	( ( 389.022	+	370.798 )	/ 2 )
	=	-51.192	/	379.91
	=	-13.47 %

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

Largo (TSX:LGO) 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.

Largo ROCE % Related Terms

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Largo Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Largo Inc (TSX:LGO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LGO:USA LR8B:Germany LR8:Germany

Address

100 King Street West, Suite 1600, First Canadian Place, Toronto, ON, CAN, M5X 1G5

Website

https://www.largoinc.com

Largo Inc is committed to the production and supply of high-quality vanadium products. The Company is also focused on the advancement of renewable energy storage solutions through Largo Clean Energy and its vanadium redox flow battery technology. The Company is engaged in the mining, exploration, and development of mineral properties, predominantly in Brazil, through which it produces and supplies vanadium products VPURE Flake, VPURE+ Flake, and VPURE+ Powder. The Company has six operating segments: sales & trading wich generates key revenue, mine properties, corporate, exploration and evaluation properties, Largo Clean Energy, and Largo Physical Vanadium.

Executives

Nilson Luciano Helio Chaves	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Koko Yamamoto	Director
Ernest Michael Cleave	Senior Officer
Paul Dalglish	Senior Officer