OD6 Metals (ASX:OD6) ROCE % : -26.17% (As of Dec. 2023)

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What is OD6 Metals 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. OD6 Metals's annualized ROCE % for the quarter that ended in Dec. 2023 was -26.17%.

OD6 Metals ROCE % Historical Data

The historical data trend for OD6 Metals'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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OD6 Metals ROCE % Chart

OD6 Metals Annual Data

Trend

Jun22

Jun23

ROCE %

-15.36

-18.10

OD6 Metals Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	-	-	-13.75	-22.48	-26.17

OD6 Metals ROCE % Calculation

OD6 Metals'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 )
	=	-1.483	/	( ( (9.393 - 0.67)	+	(8.611 - 0.946) )	/ 2 )
	=	-1.483	/	( (8.723	+	7.665)	/ 2 )
	=	-1.483	/	8.194
	=	-18.10 %

OD6 Metals'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 )
	=	-2.046	/	( ( (8.611 - 0.946)	+	(8.276 - 0.302) )	/ 2 )
	=	-2.046	/	( ( 7.665	+	7.974 )	/ 2 )
	=	-2.046	/	7.8195
	=	-26.17 %

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

OD6 Metals (ASX:OD6) 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.

OD6 Metals ROCE % Related Terms

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OD6 Metals (ASX:OD6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » OD6 Metals Ltd (ASX:OD6) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

C/- LCP Group, 50 Kings Park Road, Level 1, West Perth, Perth, WA, AUS, 6005

Website

https://www.od6metals.com.au

OD6 Metals Ltd is a mineral exploration company focused on the discovery and potential development of large-scale rare earth element (REE) deposits. The company holds a 100% interest in the Splinter Rock Project and Grass Patch Project which are located in the Goldfields-Esperance region of Western Australia, approximately 30 to 150km north of the major port and town of Esperance.

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