Labrador Iron Ore Royalty (TSX:LIF) ROCE % : 21.87% (As of Dec. 2024)

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What is Labrador Iron Ore Royalty 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. Labrador Iron Ore Royalty's annualized ROCE % for the quarter that ended in Dec. 2024 was 21.87%.

Labrador Iron Ore Royalty ROCE % Historical Data

The historical data trend for Labrador Iron Ore Royalty'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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Labrador Iron Ore Royalty ROCE % Chart

Labrador Iron Ore Royalty Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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22.66

31.21

24.23

19.30

19.98

Labrador Iron Ore Royalty Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															21.10	21.01	19.46	15.66	21.87

Labrador Iron Ore Royalty ROCE % Calculation

Labrador Iron Ore Royalty's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	157.022	/	( ( (837.044 - 40.342)	+	(836.127 - 61.005) )	/ 2 )
	=	157.022	/	( (796.702	+	775.122)	/ 2 )
	=	157.022	/	785.912
	=	19.98 %

Labrador Iron Ore Royalty's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	171.76	/	( ( (849.396 - 53.939)	+	(836.127 - 61.005) )	/ 2 )
	=	171.76	/	( ( 795.457	+	775.122 )	/ 2 )
	=	171.76	/	785.2895
	=	21.87 %

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

Labrador Iron Ore Royalty (TSX:LIF) 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.

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Labrador Iron Ore Royalty Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Labrador Iron Ore Royalty Corp (TSX:LIF) » Definitions » ROCE %

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LIFZF:USA

Address

235 Water Street, P.O. Box 610, Suite 1000, Scotia Centre, St. John’s, NL, CAN, A1C 5L3

Website

https://www.labradorironore.com

Labrador Iron Ore Royalty Corporation is a Canadian corporation. The company generates all of its revenue from its equity investment in Iron Ore Company of Canada, (IOC) and its IOC royalty and commission interests. IOC operates an iron mine near Labrador City, Newfoundland, and Labrador on lands leased from LIORC. Directly and through its wholly-owned subsidiary, Hollinger-Hanna, LIORC owns an equity interest in IOC and receives gross overriding royalty on all iron ore products produced from the leased lands that are sold and shipped by IOC and commission on IOC's sales of iron ore. IOC is a Canadian producer of iron ore pellets and concentrate, serving its customers.

Executives

Dorothea Mell	Director
Douglas Mccutcheon	Director
Sandra Louise Rosch	Director
John Tuer	Director, Senior Officer
William J Corcoran	Director
Duncan Newton Rowell Jackman	Director
William Hugh Mcneil	Director
Patricia Mary Volker	Director