Lithium Energy (ASX:LEL) ROCE % : -6.01% (As of Dec. 2023)

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What is Lithium Energy 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 Energy's annualized ROCE % for the quarter that ended in Dec. 2023 was -6.01%.

Lithium Energy ROCE % Historical Data

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

Lithium Energy Annual Data

Trend

Jun21

Jun22

Jun23

ROCE %

-7.52

-15.89

-52.21

Lithium Energy Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial			-23.98	-7.46	-96.26	-14.81	-6.01

Lithium Energy ROCE % Calculation

Lithium Energy'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: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-12.064	/	( ( (14.253 - 0.167)	+	(33.32 - 1.196) )	/ 2 )
	=	-12.064	/	( (14.086	+	32.124)	/ 2 )
	=	-12.064	/	23.105
	=	-52.21 %

Lithium Energy'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 )
	=	-1.94	/	( ( (33.32 - 1.196)	+	(32.857 - 0.422) )	/ 2 )
	=	-1.94	/	( ( 32.124	+	32.435 )	/ 2 )
	=	-1.94	/	32.2795
	=	-6.01 %

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

Lithium Energy (ASX:LEL) 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 Energy ROCE % Related Terms

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Lithium Energy (ASX:LEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Energy Ltd (ASX:LEL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

680 Murray Street, Suite 1, Level 1, West Perth, WA, AUS, 6005

Website

https://www.lithiumenergy.com.au

Lithium Energy Ltd is a battery minerals company with two exploration and development projects, the Solaroz Lithium Project in Argentina, which comprises 12,000 hectares of prospective lithium mineral concessions, and the Burke Graphite Project in Queensland, which contains a high-grade graphite deposit and presents an opportunity to participate in the anticipated growth in demand for graphite and graphite related products. The company derives the majority of its revenue from Argentina.

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