LG Energy Solution (XKRX:373220) ROCE % : 4.46% (As of Dec. 2023)

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What is LG Energy Solution 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. LG Energy Solution's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.46%.

LG Energy Solution ROCE % Historical Data

The historical data trend for LG Energy Solution'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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LG Energy Solution ROCE % Chart

LG Energy Solution Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

-4.57

6.17

5.39

7.69

LG Energy Solution Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial							6.06	11.31	9.56	6.00	4.46

LG Energy Solution ROCE % Calculation

LG Energy Solution'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: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2359212	/	( ( (38299445 - 11444923)	+	(45437144 - 10937185) )	/ 2 )
	=	2359212	/	( (26854522	+	34499959)	/ 2 )
	=	2359212	/	30677240.5
	=	7.69 %

LG Energy Solution'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 )
	=	1525316	/	( ( (45168509 - 11290328)	+	(45437144 - 10937185) )	/ 2 )
	=	1525316	/	( ( 33878181	+	34499959 )	/ 2 )
	=	1525316	/	34189070
	=	4.46 %

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

LG Energy Solution (XKRX:373220) 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.

LG Energy Solution ROCE % Related Terms

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LG Energy Solution (XKRX:373220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LG Energy Solution Ltd (XKRX:373220) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR

Website

https://www.lgensol.com

LG Energy Solution, or LGES, is the third-largest battery maker for electric vehicles, or EVs, with about 14% global share in the first half of 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for close to 60% of total revenue in 2022. Besides EV batteries, LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai Motors and Stellantis.

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