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LG Energy Solution (XKRX:373220) 3-Year ROIIC % : 10.28% (As of Dec. 2023)


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What is LG Energy Solution 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. LG Energy Solution's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 10.28%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for LG Energy Solution's 3-Year ROIIC % or its related term are showing as below:

XKRX:373220's 3-Year ROIIC % is ranked better than
58.29% of 2918 companies
in the Industrial Products industry
Industry Median: 5.875 vs XKRX:373220: 10.28

LG Energy Solution 3-Year ROIIC % Historical Data

The historical data trend for LG Energy Solution's 3-Year ROIIC % 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.

* Premium members only.

LG Energy Solution 3-Year ROIIC % Chart

LG Energy Solution Annual Data
Trend Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
- - - 10.28

LG Energy Solution Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % 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 - 10.28 - - -

Competitive Comparison of LG Energy Solution's 3-Year ROIIC %

For the Electrical Equipment & Parts subindustry, LG Energy Solution's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LG Energy Solution's 3-Year ROIIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, LG Energy Solution's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where LG Energy Solution's 3-Year ROIIC % falls into.



LG Energy Solution 3-Year ROIIC % Calculation

LG Energy Solution's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 1734048.3744 (Dec. 2023) - -359445.8184 (Dec. 2020) )/( 33778218 (Dec. 2023) - 13413870 (Dec. 2020) )
=2093494.1928/20364348
=10.28%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


LG Energy Solution  (XKRX:373220) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


LG Energy Solution 3-Year ROIIC % Related Terms

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LG Energy Solution Business Description

Traded in Other Exchanges
N/A
Address
Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR
LG Energy Solution is the third-largest battery maker for electric vehicles with about 15% global share in 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for more than 60% of total revenue in 2023. LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland, and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai, and Stellantis.

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