Lithium Australia NL (OTCMKTS:$LMMFF) saw bids of $0.155 per share in a recent session, a volatility of 10.71% or $0.015 from open. The session also saw 4,766,589 shares trade hands.

Even with a solid game plan, investor portfolios could fall apart late in the game due to an early lack of discipline. When a new investment drops into the red initially, many investors are tempted to devote too much time and effort to get back to even. This can result in investors abandoning plans and making poorly thought out trades with large expectations. Discipline can help an investor stick to the plan and achieve their long-term goals.

So what can we learn from Lithium Australia’s fundamentals? Fundamental analysis uses industry, market, and stock conditions in order to help determine if stocks are correctly valued. Lithium Australia currently has a yearly EPS of -$0.01. This number is determined by taking the total net income and dividing it by the shares outstanding. Simply put, this number tells investors how profitable a company is to shareholders on a per share basis.

We can also look at the three profitability ratios to get a better understanding of Lithium Australia’s fundamentals.

First, we can take a look at Return on Assets. This ratio takes net income and compares it to the total assets. To put it simply, this ratio tells an investor how well the company capitalizes on its assets. A higher number reflects well, while a lower number might send up red flags. Lithium Australia currently has an ROA of -34.47.

Next, we can look at the Return on Invested Capital. Much like ROA, ROIC takes the net income and compares it to another factor, in this case, the income from investors, to determine how profitable a company is. Also like ROA, the higher the number, the better. The company currently has an ROIC of -36.47.

Finally, we can take a look at the Return on Equity. This ratio takes into account the net income against the investments received from shareholders. It tells us how good a company is at taking in investments and generating capital on it. Lithium Australia currently has an ROE of -36.47.

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