Cavalier Resources (ASX:CVR) ROCE % : -15.51% (As of Dec. 2023)

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What is Cavalier Resources 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. Cavalier Resources's annualized ROCE % for the quarter that ended in Dec. 2023 was -15.51%.

Cavalier Resources ROCE % Historical Data

The historical data trend for Cavalier Resources'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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Cavalier Resources ROCE % Chart

Cavalier Resources Annual Data

Trend

Jun22

Jun23

ROCE %

-5.62

-16.48

Cavalier Resources Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	-	-	-18.16	-14.60	-15.51

Cavalier Resources ROCE % Calculation

Cavalier Resources'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: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-0.819	/	( ( (5.599 - 0.369)	+	(4.988 - 0.276) )	/ 2 )
	=	-0.819	/	( (5.23	+	4.712)	/ 2 )
	=	-0.819	/	4.971
	=	-16.48 %

Cavalier Resources'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 )
	=	-0.712	/	( ( (4.988 - 0.276)	+	(4.561 - 0.09) )	/ 2 )
	=	-0.712	/	( ( 4.712	+	4.471 )	/ 2 )
	=	-0.712	/	4.5915
	=	-15.51 %

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

Cavalier Resources (ASX:CVR) 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.

Cavalier Resources ROCE % Related Terms

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Cavalier Resources (ASX:CVR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Cavalier Resources Ltd (ASX:CVR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

22 Mount Street, Level 2, Perth, WA, AUS, 6000

Website

https://www.cavalierresources.com.au

Cavalier Resources Ltd is focused on identifying and acquiring prospective mineral exploration projects. The company owns or has the right to acquire controlling interests in Tenements in Western Australia, collectively known as the Leonora Gold Project, Hidden Jewel Gold Project, and Ella's Rock Nickel-Gold Project. These projects are prospective for gold and nickel mineralization. The company has a single geographical location i.e. Australia.