Avalon Advanced Materials (Avalon Advanced Materials) ROCE % : 13.01% (As of Nov. 2023)

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What is Avalon Advanced Materials 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. Avalon Advanced Materials's annualized ROCE % for the quarter that ended in Nov. 2023 was 13.01%.

Avalon Advanced Materials ROCE % Historical Data

The historical data trend for Avalon Advanced Materials'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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Avalon Advanced Materials ROCE % Chart

Avalon Advanced Materials Annual Data

Trend

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

ROCE %

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-2.63

-2.31

-2.77

-4.57

-3.44

Avalon Advanced Materials Quarterly Data
	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Nov22	Feb23	May23	Nov23
ROCE %	Get a 7-Day Free Trial															-5.77	-1.50	-3.56	-4.03	13.01

Avalon Advanced Materials ROCE % Calculation

Avalon Advanced Materials's annualized ROCE % for the fiscal year that ended in Aug. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2021 )		(A: Aug. 2020 )		(A: Aug. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2021 )		(A: Aug. 2020 )		(A: Aug. 2021 )
	=	-3.108	/	( ( (88.137 - 0.789)	+	(94.03 - 0.681) )	/ 2 )
	=	-3.108	/	( (87.348	+	93.349)	/ 2 )
	=	-3.108	/	90.3485
	=	-3.44 %

Avalon Advanced Materials's ROCE % of for the quarter that ended in Nov. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2023 )		(Q: May. 2023 )		(Q: Nov. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2023 )		(Q: May. 2023 )		(Q: Nov. 2023 )
	=	11.96	/	( ( (88.784 - 2.378)	+	(98.984 - 1.483) )	/ 2 )
	=	11.96	/	( ( 86.406	+	97.501 )	/ 2 )
	=	11.96	/	91.9535
	=	13.01 %

(1) Note: The EBIT data used here is four times the quarterly (Nov. 2023) EBIT data.

Avalon Advanced Materials (OTCPK:AVLNF) 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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Avalon Advanced Materials (Avalon Advanced Materials) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Avalon Advanced Materials Inc (OTCPK:AVLNF) » Definitions » ROCE %

Comparable Companies

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OU5A:Germany AVL:Canada

Address

130 Adelaide Street West, Suite 1901, Toronto, ON, CAN, M5H 3P5

Website

https://www.avalonadvancedmaterials.com

Avalon Advanced Materials Inc is a mineral exploration and development company. The projects of the company includes East Kemptville, Lilypad, Nechalacho, Separation Rapids, and Warren Township.