Lithium Americas (TSX:LAC) Operating Income : C$-30.28 Mil (TTM As of Mar. 2024)

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What is Lithium Americas Operating Income?

Lithium Americas's Operating Income for the three months ended in Mar. 2024 was C$-7.51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was C$-30.28 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lithium Americas's Operating Income for the three months ended in Mar. 2024 was C$-7.51 Mil. Lithium Americas's Revenue for the three months ended in Mar. 2024 was C$0.00 Mil. Therefore, Lithium Americas's Operating Margin % for the quarter that ended in Mar. 2024 was %.

Lithium Americas's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lithium Americas's annualized ROC % for the quarter that ended in Mar. 2024 was -8.58%. Lithium Americas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -9.74%.

Lithium Americas Operating Income Historical Data

The historical data trend for Lithium Americas's Operating Income 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.

* Premium members only.

Lithium Americas Operating Income Chart

Lithium Americas Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Operating Income

-29.94

-56.95

-82.67

-37.06

Lithium Americas Quarterly Data
	Dec20	Dec21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial					-7.63	-	-4.31	-18.46	-7.51

Lithium Americas Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$-30.28 Mil.

Lithium Americas (TSX:LAC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lithium Americas's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-30.04 * ( 1 - 0% )	/	( (315.033	+	385.084)	/ 2 )
=	-30.04	/	350.0585
=	-8.58 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	589.633	-	31.341	-	( 262.304	-	max(0, 32.954	-	276.213	+	262.304	))
=	315.033

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	590.879	-	28.145	-	( 199.307	-	max(0, 29.897	-	207.547	+	199.307	))
=	385.084

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Lithium Americas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-32.528	/	( ( (298.059 + max(-25.075, 0))	+	(369.625 + max(-23.049, 0)) )	/	2 )
=	-32.528	/	( ( 298.059	+	369.625 )	/	2 )
=	-32.528	/	333.842
=	-9.74 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	7.8790000000001)	-	(31.341	+	0	+	1.613)
=	-25.075

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	6.848)	-	(28.145	+	0	+	1.752)
=	-23.049

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Lithium Americas's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	-7.51	/	0
	=	%

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Lithium Americas Operating Income Related Terms

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Lithium Americas (TSX:LAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Americas Corp (TSX:LAC) » Definitions » Operating Income

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Traded in Other Exchanges

LAC:USA WUC:Germany WUC:Germany

Address

900 West Hastings Street, Suite 300, Vancouver, BC, CAN, V6C 1E5

Website

https://www.lithiumamericas.com

Lithium Americas is a pure-play lithium producer. The firm owns one resource, Thacker Pass, that is located in northwest Nevada. Thacker Pass recently began construction and is expected to begin production in the mid-2020s. Thacker Pass is one of the largest known lithium resources in the world. The project would be the first clay-based asset to enter production, and we estimate it will be in bottom half of the global cost curve. Management plans to develop Thacker Pass into a fully integrated lithium production site, with downstream refining capabilities on site, and will sell into the lithium chemical market.