Legacy Iron Ore (ASX:LCY) ROCE % : 12.74% (As of Sep. 2023)

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What is Legacy Iron Ore 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. Legacy Iron Ore's annualized ROCE % for the quarter that ended in Sep. 2023 was 12.74%.

Legacy Iron Ore ROCE % Historical Data

The historical data trend for Legacy Iron Ore'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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Legacy Iron Ore ROCE % Chart

Legacy Iron Ore Annual Data

Trend

Jun13

Jun14

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-6.12

-5.08

-3.00

-4.25

8.24

Legacy Iron Ore Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial															-4.56	-3.96	18.87	-2.44	12.74

Legacy Iron Ore ROCE % Calculation

Legacy Iron Ore's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	2.01	/	( ( (23.607 - 0.235)	+	(25.612 - 0.192) )	/ 2 )
	=	2.01	/	( (23.372	+	25.42)	/ 2 )
	=	2.01	/	24.396
	=	8.24 %

Legacy Iron Ore's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	3.354	/	( ( (25.612 - 0.192)	+	(27.525 - 0.303) )	/ 2 )
	=	3.354	/	( ( 25.42	+	27.222 )	/ 2 )
	=	3.354	/	26.321
	=	12.74 %

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

Legacy Iron Ore (ASX:LCY) 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.

Legacy Iron Ore ROCE % Related Terms

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Legacy Iron Ore (ASX:LCY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Legacy Iron Ore Ltd (ASX:LCY) » Definitions » ROCE %

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Address

200 Adelaide Terrace, Level 6, West Perth, Perth, WA, AUS, 6004

Website

http://www.legacyiron.com.au

Legacy Iron Ore Ltd is engaged in the exploration and development of mineral properties. It holds a diverse portfolio of assets spanning iron ore, gold and base metals, Tungsten, Rare earth elements. Its projects include Mt Bevan Project, South Laverton Gold Project, Mt. Celia Project and many more.