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Chemtura (Chemtura) Asset Turnover : 0.18 (As of Dec. 2016)


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What is Chemtura Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Chemtura's Revenue for the three months ended in Dec. 2016 was $385 Mil. Chemtura's Total Assets for the quarter that ended in Dec. 2016 was $2,197 Mil. Therefore, Chemtura's Asset Turnover for the quarter that ended in Dec. 2016 was 0.18.

Asset Turnover is linked to ROE % through Du Pont Formula. Chemtura's annualized ROE % for the quarter that ended in Dec. 2016 was 8.98%. It is also linked to ROA % through Du Pont Formula. Chemtura's annualized ROA % for the quarter that ended in Dec. 2016 was 4.01%.


Chemtura Asset Turnover Historical Data

The historical data trend for Chemtura'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.

* Premium members only.

Chemtura Asset Turnover Chart

Chemtura Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.75 0.78 0.82 0.69 0.73

Chemtura Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.17 0.18 0.20 0.19 0.18

Competitive Comparison of Chemtura's Asset Turnover

For the Specialty Chemicals subindustry, Chemtura'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.


Chemtura's Asset Turnover Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Chemtura's Asset Turnover distribution charts can be found below:

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



Chemtura Asset Turnover Calculation

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

Chemtura's Asset Turnover for the fiscal year that ended in Dec. 2016 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2016 )/( (Total Assets (A: Dec. 2015 )+Total Assets (A: Dec. 2016 ))/ count )
=1654/( (2360+2168)/ 2 )
=1654/2264
=0.73

Chemtura's Asset Turnover for the quarter that ended in Dec. 2016 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2016 )/( (Total Assets (Q: Sep. 2016 )+Total Assets (Q: Dec. 2016 ))/ count )
=385/( (2226+2168)/ 2 )
=385/2197
=0.18

* 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.


Chemtura  (NYSE:CHMT) Asset Turnover Explanation

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

Chemtura's annulized ROE % for the quarter that ended in Dec. 2016 is

ROE %**(Q: Dec. 2016 )
=Net Income/Total Stockholders Equity
=88/980.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(88 / 1540)*(1540 / 2197)*(2197/ 980.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.71 %*0.701*2.2407
=ROA %*Equity Multiplier
=4.01 %*2.2407
=8.98 %

Note: The Net Income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 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:

Chemtura's annulized ROA % for the quarter that ended in Dec. 2016 is

ROA %(Q: Dec. 2016 )
=Net Income/Total Assets
=88/2197
=(Net Income / Revenue)*(Revenue / Total Assets)
=(88 / 1540)*(1540 / 2197)
=Net Margin %*Asset Turnover
=5.71 %*0.701
=4.01 %

Note: The Net Income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


Chemtura Asset Turnover Related Terms

Thank you for viewing the detailed overview of Chemtura's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Chemtura (Chemtura) Business Description

Traded in Other Exchanges
N/A
Address
Chemtura manufactures and sells a variety of chemicals, which include lubricants and bromine. The company organizes itself into two segments based on product type. The industrial performance products segment, which generates most of Chemtura's revenue, sells synthetic lubricants and specialty greases that reduce friction for engines and machines. These products are typically sold to the automotive, aviation, marine, and refrigeration industries. The industrial engineered products segment sells a variety of bromine-based products, which include brominated flame retardants for consumer electronics, oil and gas drilling fluids, and pesticides for the agricultural industry. More revenue comes from North America than any other region.
Executives
Jeffrey D Benjamin director 9 WEST 57TH STREET, 43TH FLOOR, NEW YORK NY 10019
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
John K Wulff director C/O HERCULES INC, 1313 NORTH MARKET STREET, WILMINGTON DE 19894-0001
Stephen C Forsyth officer: EVP & CFO C/O HEXCEL CORP, 281 TRESSER BLVD, STAMFORD CT 06901
Jonathan F Foster director 777 THIRD AVE, 30TH FL, NEW YORK NY 10017
Laurence Michael Orton officer: VP, Corporate Controller C/O CHEMTURA CORPORATION, 199 BENSON ROAD, MIDDLEBURY CT 06749
Craig A Rogerson director, officer: President and CEO 1313 N MARKET ST, WILMINGTON DE 19894
Timothy J Bernlohr director 90 EAST HALSEY RD., PARSIPPANY NJ 07054
James W Crownover director
Kevin V Mahoney officer: SVP and Corporate Controller 199 BENSON ROAD, MIDDLEBURY CT 06749
Roger L Headrick director 199 BENSON RD, MIDDLEBURY CT 06749
Burton M Joyce director
Hale Martin M Sr director C/O GREAT LAKES CHEMICAL, 500 E 96TH STREET SUITE 500, INDIANAPOLIS IN 46240
Trian Fund Management, L.p. other: less than 10% owner 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Edward P Garden director 223 SUNSET AVENUE, PALM BEACH FL 33480

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