Arco Platform (Arco Platform) Asset Turnover : 0.07 (As of Jun. 2023)

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What is Arco Platform Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Arco Platform's Revenue for the three months ended in Jun. 2023 was $97.0 Mil. Arco Platform's Total Assets for the quarter that ended in Jun. 2023 was $1,317.2 Mil. Therefore, Arco Platform's Asset Turnover for the quarter that ended in Jun. 2023 was 0.07.

Asset Turnover is linked to ROE % through Du Pont Formula. Arco Platform's annualized ROE % for the quarter that ended in Jun. 2023 was -11.20%. It is also linked to ROA % through Du Pont Formula. Arco Platform's annualized ROA % for the quarter that ended in Jun. 2023 was -4.63%.

Arco Platform Asset Turnover Historical Data

The historical data trend for Arco Platform's Asset Turnover 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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Arco Platform Asset Turnover Chart

Arco Platform Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Asset Turnover

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0.41

0.25

0.24

0.22

0.31

Arco Platform Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Asset Turnover	Get a 7-Day Free Trial															0.07	0.04	0.12	0.09	0.07

Competitive Comparison of Arco Platform's Asset Turnover

For the Education & Training Services subindustry, Arco Platform's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Arco Platform's Asset Turnover Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Arco Platform's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Arco Platform's Asset Turnover falls into.

Arco Platform Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Arco Platform's Asset Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
=	338.473	/	( (1059.279	+	1096.848)	/ 2 )
=	338.473	/	1078.0635
=	0.31

Arco Platform's Asset Turnover for the quarter that ended in Jun. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jun. 2023 )	/	( (Total Assets (Q: Mar. 2023 )	+	Total Assets (Q: Jun. 2023 ))	/ count )
=	97.032	/	( (1307.246	+	1327.217)	/ 2 )
=	97.032	/	1317.2315
=	0.07

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Arco Platform (NAS:ARCE) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Arco Platform's annulized ROE % for the quarter that ended in Jun. 2023 is

	ROE %^**		(Q: Jun. 2023 )
=	Net Income	/	Total Stockholders Equity
=	-61.016	/	544.828
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-61.016 / 388.128)	*	(388.128 / 1317.2315)	*	(1317.2315/ 544.828)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-15.72 %	*	0.2947	*	2.4177
=	ROA %	*	Equity Multiplier
=	-4.63 %	*	2.4177
=	-11.20 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Arco Platform's annulized ROA % for the quarter that ended in Jun. 2023 is

	ROA %		(Q: Jun. 2023 )
=	Net Income	/	Total Assets
=	-61.016	/	1317.2315
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-61.016 / 388.128)	*	(388.128 / 1317.2315)
=	Net Margin %	*	Asset Turnover
=	-15.72 %	*	0.2947
=	-4.63 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Arco Platform Asset Turnover Related Terms

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Arco Platform (Arco Platform) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Arco Platform Ltd (NAS:ARCE) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Augusta 2840, 9th Floor, Suite 91, Consolacao, Sao Paulo, SP, BRA, 01412-100

Website

https://www.arcoeducacao.com.br

Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. Its operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.