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LARLithium Argentina AG
$7.79$1.3B
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  4. Financial Ratios

Lithium Argentina AG (LAR) Financial Ratios

Latest Ratios: P/E Ratio -16.6x · EV/EBITDA N/A · ROE -8.8%. (2007–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LAR Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Market Cap$1.3B$905M$423M————————
Enterprise Value$1.4B$1.1B$548M————————
P/E Ratio →-16.57——————————
P/S Ratio———————————
P/B Ratio1.551.110.47————————
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

LAR EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
EV / Revenue———————————
EV / EBITDA———————————
EV / EBIT———————————
EV / FCF———————————

LAR Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Gross Margin—————————-42.3%—
Operating Margin—————————-589.4%—
Net Profit Margin—————————-775.1%—

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
ROE-8.8%-8.8%-1.8%159.8%-14.2%-10.6%-21.8%42.7%-29.6%-41.5%-21.4%
ROA-6.8%-6.8%-1.4%124.4%-10.2%-6.7%-12.3%26.0%-26.0%-38.8%-19.0%
ROIC-2.8%-2.8%-2.3%-3.6%-2.4%-16.9%-14.1%-11.6%-23.4%-24.5%-14.2%
ROCE-4.4%-4.4%-3.7%-6.2%-2.6%-9.2%-11.3%-10.2%-24.1%-31.1%-18.0%

LAR Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Debt / Equity0.290.290.240.490.530.490.650.720.230.010.06
Debt / EBITDA———————————
Net Debt / Equity—0.210.140.340.28-0.46-0.120.20-0.28-0.500.01
Net Debt / EBITDA———————————
Debt / FCF———————————
Interest Coverage-1.49-1.49-0.032.20-0.58-2.12-9.20-6.60-36.33—-9.63

LAR Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Current Ratio0.300.300.490.621.5964.5117.636.2013.9616.441.52
Quick Ratio0.300.300.490.621.5964.5117.636.1213.4815.881.42
Cash Ratio0.220.220.360.571.5761.8516.915.5812.381.920.54
Asset Turnover—————————0.04—
Inventory Turnover————————4.212.93—
Days Sales Outstanding—————————86.53—

LAR Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Dividend Yield———————————
Payout Ratio———21.4%———————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2015
Earnings Yield———————————
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%————————
Total Shareholder Yield0.0%0.0%0.0%————————
Shares Outstanding—$162M$161M$161M$134M$119M$92M$92M$89M$76M$27M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity and Ramp-up Risk

Speculative Pricing Amidst Production Uncertainty

Based on reported figures, Lithium Argentina AG trades at a forward P/E of 19.09, a valuation that appears highly speculative given the company's lack of consistent historical earnings and the inherent volatility associated with the ongoing ramp-up of its Cauchari-Olaroz brine project in the current lithium market.

The forward P/E multiple suggests that the market is pricing in a rapid transition to profitability that remains unproven by current operational data. Investors should monitor whether this valuation reflects a premium for the Ganfeng partnership or if it is merely a high-beta reaction to broader sector sentiment, as the lack of a meaningful EV/EBITDA multiple makes traditional fundamental benchmarking difficult.

Capital Efficiency Remains Deeply Negative

As reported in financial statements, the company's ROIC has consistently hovered in negative territory, reaching -0.8% in 2026Q1, which indicates that the firm is currently destroying value rather than compounding it as it navigates the capital-intensive development phase of its Argentinian brine assets.

The persistent negative ROIC suggests that the capital deployed into the Cauchari-Olaroz project has yet to generate returns that exceed the cost of capital. This trend warrants further investigation into whether the current asset base can achieve the necessary scale to turn these returns positive, or if the high fixed-cost structure will continue to suppress capital efficiency.

Liquidity Buffers Constrained by Operations

According to recent quarterly filings, the company's current ratio has deteriorated to 0.52 as of 2026Q1, reflecting a tightening liquidity position that leaves little room for operational error as the firm navigates the high-intensity capital requirements of its primary lithium carbonate production project.

A current ratio below 1.0 indicates that current liabilities exceed current assets, suggesting that the company may face difficulty meeting short-term obligations without further external financing. This liquidity profile appears vulnerable, particularly given the company's reliance on the successful ramp-up of production to generate the cash flow necessary to stabilize its balance sheet.

Debt Service Risk Amidst Development

Based on the company's reported figures, total debt has fluctuated significantly, reaching $243.1 million in 2026Q1, which, when viewed alongside a debt-to-equity ratio of 0.29, indicates that the firm relies on external financing to sustain its high-cost operational ramp-up phase in a challenging commodity price environment.

While the debt-to-equity ratio may appear manageable in isolation, the company's inconsistent interest coverage ratio suggests that debt service could become a significant burden if production milestones are delayed. Investors should monitor the company's ability to refinance or service this debt, as the current lack of stable operating cash flow increases the risk of further dilution.

Misapplication of P/E in Development

The most commonly misapplied ratio for Lithium Argentina AG is the Price-to-Earnings (P/E) ratio, which obscures the company's true economic reality by focusing on accounting net income that is frequently distorted by non-operating gains and the capitalization of development costs during the pre-revenue phase.

Using P/E to value a developer like LAR is misleading because it ignores the massive cash burn and the non-cash nature of many accounting entries. Analysts should instead focus on the Price-to-Book (P/B) ratio or, more appropriately, a discounted cash flow analysis of the project's NPV, which better captures the long-term value of the brine assets rather than short-term accounting fluctuations.

Download Financial Ratios Data

Includes 30+ ratios · 18 years · Updated daily

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LAR — Frequently Asked Questions

Quick answers to the most common questions about buying LAR stock.

What is Lithium Argentina AG's P/E ratio?

Lithium Argentina AG's current P/E ratio is -16.6x. This places it at the 50th percentile of its historical range.

What is Lithium Argentina AG's ROE?

Lithium Argentina AG's return on equity (ROE) is -8.8%. The historical average is -11.2%.

Is LAR stock overvalued?

Based on historical data, Lithium Argentina AG is trading at a P/E of -16.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.