Lithium Americas (Argentina) (TSX:LAAC) ROCE % : 4.97% (As of Dec. 2023)

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What is Lithium Americas (Argentina) 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. Lithium Americas (Argentina)'s annualized ROCE % for the quarter that ended in Dec. 2023 was 4.97%.

Lithium Americas (Argentina) ROCE % Historical Data

The historical data trend for Lithium Americas (Argentina)'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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Lithium Americas (Argentina) ROCE % Chart

Lithium Americas (Argentina) Annual Data

Trend

Sep14

Sep15

Sep16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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30.53

-10.04

-4.65

-1.33

4.96

Lithium Americas (Argentina) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															13.93	-0.37	9.11	3.50	4.97

Lithium Americas (Argentina) ROCE % Calculation

Lithium Americas (Argentina)'s annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	68.238	/	( ( (1380.98 - 26.688)	+	(1415.423 - 19.559) )	/ 2 )
	=	68.238	/	( (1354.292	+	1395.864)	/ 2 )
	=	68.238	/	1375.078
	=	4.96 %

Lithium Americas (Argentina)'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	83.436	/	( ( (2029.544 - 66.43)	+	(1415.423 - 19.559) )	/ 2 )
	=	83.436	/	( ( 1963.114	+	1395.864 )	/ 2 )
	=	83.436	/	1679.489
	=	4.97 %

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

Lithium Americas (Argentina) (TSX:LAAC) 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.

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Lithium Americas (Argentina) (TSX:LAAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Americas (Argentina) Corp (TSX:LAAC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LAAC:USA WUC0:Germany

Address

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

Website

https://www.lithium-argentina.com

Lithium Argentina is a pure-play lithium producer. The company owns two neighboring lithium brine resources in northwest Argentina: Chauchari-Olaroz and Pastos Grandes. Chauchari-Olaroz entered production in 2023, while Pastos Grandes is still in development. Lithium Argentina plans for both resources to be fully integrated with onside downstream processing capabilities and will sell into the lithium chemical market.

Executives

Juan Diego Lopez Casanello

Director