Summit Minerals (ASX:SUM) ROCE % : -41.10% (As of Dec. 2023)

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What is Summit Minerals 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. Summit Minerals's annualized ROCE % for the quarter that ended in Dec. 2023 was -41.10%.

Summit Minerals ROCE % Historical Data

The historical data trend for Summit Minerals'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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Summit Minerals ROCE % Chart

Summit Minerals Annual Data

Trend

Jun23

ROCE %

-17.44

Summit Minerals Semi-Annual Data
	Dec22	Jun23	Dec23
ROCE %	-16.25	-16.67	-41.10

Summit Minerals ROCE % Calculation

Summit Minerals'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 )
	=		/	( ( ( - )	+	( - ) )	/ )
	=		/	( (	+	)	/ )
	=		/
	=	%

Summit Minerals'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 )
	=	-2.83	/	( ( (6.1 - 0.353)	+	(8.333 - 0.309) )	/ 2 )
	=	-2.83	/	( ( 5.747	+	8.024 )	/ 2 )
	=	-2.83	/	6.8855
	=	-41.10 %

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

Summit Minerals (ASX:SUM) 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.

Summit Minerals ROCE % Related Terms

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Summit Minerals (ASX:SUM) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

389 Oxford Street, Level 1, Mount Hawthorn, WA, AUS, 6016

Website

https://www.summitminerals.com.au

Summit Minerals Ltd engages in acquiring, exploring, and developing battery mineral projects in Australia. It holds interest in the following projects: Stallion REE Uranium Project (WA), the Windfall Antimony Project (NSW), the Phillips River Lithium Project (WA), and the Northern REE Lithium Projects (WA), and the Bridgetown Lithium Projects (WA).