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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Alcoa's Revenue for the three months ended in Sep. 2016 was $5,213.00 Mil. Alcoa's Total Assets for the quarter that ended in Sep. 2016 was $36,793.50 Mil. Therefore, Alcoa's Asset Turnover for the quarter that ended in Sep. 2016 was 0.14.
Asset Turnover is linked to ROE % through Du Pont Formula. Alcoa's annualized ROE % for the quarter that ended in Sep. 2016 was 5.51%. It is also linked to ROA % through Du Pont Formula. Alcoa's annualized ROA % for the quarter that ended in Sep. 2016 was 1.80%.
The historical data trend for Alcoa'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.
Alcoa Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
Asset Turnover | Get a 7-Day Free Trial | 0.63 | 0.59 | 0.61 | 0.65 | 0.61 |
Alcoa Quarterly Data | ||||||||||||||||||||
Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | |
Asset Turnover | Get a 7-Day Free Trial | 0.15 | 0.14 | 0.14 | 0.15 | 0.14 |
For the Aluminum subindustry, Alcoa'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.
For the Metals & Mining industry and Basic Materials sector, Alcoa's Asset Turnover distribution charts can be found below:
* The bar in red indicates where Alcoa's Asset Turnover falls into.
Asset Turnover measures how quickly a company turns over its asset through sales.
Alcoa's Asset Turnover for the fiscal year that ended in Dec. 2015 is calculated as
Asset Turnover | ||||||
= | Revenue | / | Average Total Assets | |||
= | Revenue (A: Dec. 2015 ) | / | ( (Total Assets (A: Dec. 2014 ) | + | Total Assets (A: Dec. 2015 )) | / count ) |
= | 22534 | / | ( (37363 | + | 36528) | / 2 ) |
= | 22534 | / | 36945.5 | |||
= | 0.61 |
Alcoa's Asset Turnover for the quarter that ended in Sep. 2016 is calculated as
Asset Turnover | ||||||
= | Revenue | / | Average Total Assets | |||
= | Revenue (Q: Sep. 2016 ) | / | ( (Total Assets (Q: Jun. 2016 ) | + | Total Assets (Q: Sep. 2016 )) | / count ) |
= | 5213 | / | ( (36139 | + | 37448) | / 2 ) |
= | 5213 | / | 36793.5 | |||
= | 0.14 |
* 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.
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.
Alcoa (AMEX:ARNC.PR.PFD) Asset Turnover Explanation
Asset Turnover is linked to ROE % through Du Pont Formula.
Alcoa's annulized ROE % for the quarter that ended in Sep. 2016 is
ROE %** | (Q: Sep. 2016 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 664 | / | 12055 | ||
= | (Net Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (664 / 20852) | * | (20852 / 36793.5) | * | (36793.5/ 12055) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 3.18 % | * | 0.5667 | * | 3.0521 |
= | ROA % | * | Equity Multiplier | ||
= | 1.80 % | * | 3.0521 | ||
= | 5.51 % |
Note: The Net Income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) revenue data.
* 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.
** 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:
Alcoa's annulized ROA % for the quarter that ended in Sep. 2016 is
ROA % | (Q: Sep. 2016 ) | ||
= | Net Income | / | Total Assets |
= | 664 | / | 36793.5 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (664 / 20852) | * | (20852 / 36793.5) |
= | Net Margin % | * | Asset Turnover |
= | 3.18 % | * | 0.5667 |
= | 1.80 % |
Note: The Net Income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) revenue data.
* 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.
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.
Thank you for viewing the detailed overview of Alcoa's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
Joseph S Cantie | director | C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098 |
Amy E Alving | director | ARCONIC INC., 390 PARK AVENUE, NEW YORK NY 10022 |
Tolga I Oal | director, officer: Co-Chief Executive Officer | 201 ISABELLA STREET, PITTSTBURGH PA 15212 |
John C Plant | director, officer: Chairman and Co-CEO | C/O MASCO CORPORATION, 17450 COLLEGE PARKWAY, LIVONIA MI 48152 |
Jody Miller | director | 225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
James F Albaugh | director | C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606 |
Ulrich Schmidt | director | PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239 |
Nicole Weyerhaeuser Piasecki | director | 2000 WELLS FARGO PLACE, 30 EAST 7TH STREET, SAINT PAUL MN 55101-4930 |
Robert F Leduc | director | UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032 |
David J Miller | director | C/O ELLIOTT MANAGEMENT CORPORATION, 40 WEST 57TH STREET, NEW YORK NY 10019 |
Neil Edward Marchuk | officer: EVP, HR | 12025 TECH CENTER DRIVE, LIVONIA MI 48150 |
Katherine H Ramundo | officer: CLO and Corporate Secretary | C/O APTIV, 5725 INNOVATION DRIVE, TROY MI 48098 |
W Paul Myron | officer: Vice President and Controller | ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
Ken Giacobbe | officer: CFO | ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
Timothy Donald Myers | officer: Executive Vice President | ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
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