Li-Cycle Holdings (Li-Cycle Holdings) ROCE % : 35.86% (As of Dec. 2023)

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What is Li-Cycle Holdings 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. Li-Cycle Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 35.86%.

Li-Cycle Holdings ROCE % Historical Data

The historical data trend for Li-Cycle Holdings'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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Li-Cycle Holdings ROCE % Chart

Li-Cycle Holdings Annual Data

Trend

Oct19

Oct20

Oct21

Oct22

Dec23

ROCE %

-157.22

-20.92

-5.13

-16.72

Li-Cycle Holdings Quarterly Data
	Oct19	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial											-13.21	-17.17	-15.83	-70.75	35.86

Li-Cycle Holdings ROCE % Calculation

Li-Cycle Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Oct. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Oct. 2022 )		(A: Dec. 2023 )
	=	-130.3	/	( ( (882.3 - 52.7)	+	(886 - 156.7) )	/ 2 )
	=	-130.3	/	( (829.6	+	729.3)	/ 2 )
	=	-130.3	/	779.45
	=	-16.72 %

Li-Cycle Holdings'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	248.4	/	( ( (760.9 - 104.8)	+	(886 - 156.7) )	/ 2 )
	=	248.4	/	( ( 656.1	+	729.3 )	/ 2 )
	=	248.4	/	692.7
	=	35.86 %

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

Li-Cycle Holdings (NYSE:LICY) 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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Li-Cycle Holdings (Li-Cycle Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Li-Cycle Holdings Corp (NYSE:LICY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

207 Queen’s Quay West, Suite 590, Toronto, ON, CAN, M5J 1A7

Website

https://www.li-cycle.com

Li-Cycle Holdings Corp is a lithium-ion battery resource recovery and the leading lithium-ion battery recycler. Its proprietary "Spoke and Hub" recycling process is designed at its Spokes, to process battery manufacturing scrap and end-of-life batteries to produce "black mass" and other intermediate products, and at its Hubs, to process black mass to recover raw materials, including but not limited to lithium carbonate, cobalt sulphate and nickel sulphate.