Lynas Rare Earths (ASX:LYC) ROCE % : 4.28% (As of Dec. 2023)

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What is Lynas Rare Earths 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. Lynas Rare Earths's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.28%.

Lynas Rare Earths ROCE % Historical Data

The historical data trend for Lynas Rare Earths'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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Lynas Rare Earths ROCE % Chart

Lynas Rare Earths Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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13.30

-0.46

15.59

32.96

15.93

Lynas Rare Earths Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															22.60	44.09	17.02	15.71	4.28

Lynas Rare Earths ROCE % Calculation

Lynas Rare Earths'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 )
	=	351.388	/	( ( (2061.631 - 123.625)	+	(2638.675 - 164.981) )	/ 2 )
	=	351.388	/	( (1938.006	+	2473.694)	/ 2 )
	=	351.388	/	2205.85
	=	15.93 %

Lynas Rare Earths'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 )
	=	108.262	/	( ( (2638.675 - 164.981)	+	(2724.758 - 142.408) )	/ 2 )
	=	108.262	/	( ( 2473.694	+	2582.35 )	/ 2 )
	=	108.262	/	2528.022
	=	4.28 %

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

Lynas Rare Earths (ASX:LYC) 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.

Lynas Rare Earths ROCE % Related Terms

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Lynas Rare Earths (ASX:LYC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lynas Rare Earths Ltd (ASX:LYC) » Definitions » ROCE %

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LYSDY:USA LYSCF:USA LYI:Germany

Address

1 Howard Street, Level 4, Perth, WA, AUS, 6000

Website

https://www.lynascorp.com

Lynas Rare Earths Ltd is an Australian firm. It operates in a single segment and is engaged in integrated extraction and processing of Rare Earth minerals, in Australia and Malaysia; and the Development of Rare Earth deposits. It is focused on the Kalgoorlie project.

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