Livent (LTS:0A6T) ROCE % : 18.69% (As of Sep. 2023)

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What is Livent 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. Livent's annualized ROCE % for the quarter that ended in Sep. 2023 was 18.69%.

Livent ROCE % Historical Data

The historical data trend for Livent'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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Livent ROCE % Chart

Livent Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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32.37

9.04

-2.73

2.51

22.38

Livent Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															24.23	20.54	29.94	23.83	18.69

Livent ROCE % Calculation

Livent's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	335.4	/	( ( (1202.5 - 131.3)	+	(2074.2 - 148.7) )	/ 2 )
	=	335.4	/	( (1071.2	+	1925.5)	/ 2 )
	=	335.4	/	1498.35
	=	22.38 %

Livent'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: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	408	/	( ( (2283.8 - 141.5)	+	(2361.1 - 138.3) )	/ 2 )
	=	408	/	( ( 2142.3	+	2222.8 )	/ 2 )
	=	408	/	2182.55
	=	18.69 %

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

Livent (LTS:0A6T) 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.

Livent ROCE % Related Terms

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Livent (LTS:0A6T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Livent Corp (LTS:0A6T) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ARLTF:USA ALTM:USA 7WO:Germany LTM:Australia

Address

1818 Market Street, Philadelphia, PA, USA, 19103

Website

https://www.livent.com

Arcadium Lithium is a pure-play lithium producer that was formed in the Allkem-Livent merger in January 2024. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.

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