Heavy Rare Earths (ASX:HRE) ROCE % : -19.03% (As of Dec. 2023)

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What is Heavy Rare Earths 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. Heavy Rare Earths's annualized ROCE % for the quarter that ended in Dec. 2023 was -19.03%.

Heavy Rare Earths ROCE % Historical Data

The historical data trend for Heavy Rare Earths'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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Heavy Rare Earths ROCE % Chart

Heavy Rare Earths Annual Data

Trend

Jun23

ROCE %

-33.82

Heavy Rare Earths Semi-Annual Data
	Jun22	Jun23	Dec23
ROCE %	-43.55	-	-19.03

Heavy Rare Earths ROCE % Calculation

Heavy Rare Earths's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: . 20 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: . 20 )		(A: Jun. 2023 )
	=		/	( ( ( - )	+	( - ) )	/ )
	=		/	( (	+	)	/ )
	=		/
	=	%

Heavy Rare Earths's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	-0.982	/	( ( (5.564 - 0.174)	+	(5.145 - 0.213) )	/ 2 )
	=	-0.982	/	( ( 5.39	+	4.932 )	/ 2 )
	=	-0.982	/	5.161
	=	-19.03 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Heavy Rare Earths (ASX:HRE) 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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Heavy Rare Earths (ASX:HRE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Heavy Rare Earths Ltd (ASX:HRE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

459 Collins Street, Level 21, Melbourne, VIC, AUS, 3000

Website

https://www.hreltd.com.au

Heavy Rare Earths Ltd is an Australian rare earth exploration company with projects in Western Australia and the Northern Territory. The firm's key exploration project is Cowalinya in Western Australia. This is a clay-hosted rare earth project. It holds interest in Duke rare earth project. Rare earth materials are used in a wide array of technology and future-facing applications, including smartphones, wind energy, and hybrid and electric vehicles.

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