eFuture Holding (eFuture Holding) Asset Turnover : 0.13 (As of Sep. 2016)

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What is eFuture Holding Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. eFuture Holding's Revenue for the three months ended in Sep. 2016 was $4.95 Mil. eFuture Holding's Total Assets for the quarter that ended in Sep. 2016 was $38.29 Mil. Therefore, eFuture Holding's Asset Turnover for the quarter that ended in Sep. 2016 was 0.13.

Asset Turnover is linked to ROE % through Du Pont Formula. eFuture Holding's annualized ROE % for the quarter that ended in Sep. 2016 was -19.97%. It is also linked to ROA % through Du Pont Formula. eFuture Holding's annualized ROA % for the quarter that ended in Sep. 2016 was -11.84%.

eFuture Holding Asset Turnover Historical Data

The historical data trend for eFuture Holding'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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eFuture Holding Asset Turnover Chart

eFuture Holding Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Asset Turnover

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0.77

0.85

0.82

0.86

0.77

eFuture Holding 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															0.14	0.45	0.07	0.11	0.13

Competitive Comparison of eFuture Holding's Asset Turnover

For the Software - Application subindustry, eFuture Holding'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.

eFuture Holding's Asset Turnover Distribution in the Software Industry

For the Software industry and Technology sector, eFuture Holding's Asset Turnover distribution charts can be found below:

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

eFuture Holding Asset Turnover Calculation

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

eFuture Holding'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 )
=	34.89	/	( (42.673	+	48.404)	/ 2 )
=	34.89	/	45.5385
=	0.77

eFuture Holding'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 )
=	4.948	/	( (38.333	+	38.25)	/ 2 )
=	4.948	/	38.2915
=	0.13

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.

eFuture Holding (NAS:EFUT) Asset Turnover Explanation

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

eFuture Holding's annulized ROE % for the quarter that ended in Sep. 2016 is

	ROE %^**		(Q: Sep. 2016 )
=	Net Income	/	Total Stockholders Equity
=	-4.532	/	22.6925
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.532 / 19.792)	*	(19.792 / 38.2915)	*	(38.2915/ 22.6925)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-22.9 %	*	0.5169	*	1.6874
=	ROA %	*	Equity Multiplier
=	-11.84 %	*	1.6874
=	-19.97 %

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.

^** 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:

eFuture Holding's annulized ROA % for the quarter that ended in Sep. 2016 is

	ROA %		(Q: Sep. 2016 )
=	Net Income	/	Total Assets
=	-4.532	/	38.2915
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-4.532 / 19.792)	*	(19.792 / 38.2915)
=	Net Margin %	*	Asset Turnover
=	-22.9 %	*	0.5169
=	-11.84 %

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.

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.

eFuture Holding Asset Turnover Related Terms

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eFuture Holding (eFuture Holding) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.e-future.com.cn

E-Future Information Technology, Inc., established under the Cayman Islands Companies Law on November 2, 2000. The Company changed its name from 'e-Future Information Technology Inc.' to 'eFuture Information Technology Inc.' in December 2008. It provides software and services to China's retail and consumer goods industries. It offers one-stop, end-to-end integrated portfolio of software and services from factory to consumer on seven verticals: Fast Moving Consumer Goods (FMCG), Department Store, Shopping Mall, Grocery, Logistics, Specialty Store and Online Retailers. Its clients include manufacturers, distributors, resellers, logistics companies and retailers. The Company's client base encompasses corporations such as Procter & Gamble, Pepsi, L'Oreal, Kimberly-Clark, Gucci and B&Q as well as Chinese companies. The Company has three business lines: software, professional services and cloud service. Its software solutions include the management of merchandizing, distribution, warehousing, supply chains, customer relationships, logistics and points of sale. It consists of three deployable groups of products: Foundation Solutions, Collaborative Solutions and Intelligent Solutions. Foundation Solutions - are used to meet client needs for services such as retail management, point of sale ('POS'), distribution management, logistics management, warehouse management, vendor payment and control and loyalty card management. Collaborative Solutions - are used to meet client needs for services such as visual SCM and visual process management systems. Depending on the type of customer and their needs, clients use a variety of Collaborative Solutions. Intelligent Solutions - are used to meet client needs for services such as business intelligence, brand analysis, supplier relationship management and customer relationship management systems. Professional Services includes recurring maintenance and support services on existing software installations, delivery services, consulting services and outsourcing services. Maintenance and Support Service - is provided following the installation of its software solutions, as clients will typically require ongoing maintenance support and software upgrades to ensure the efficient operation of their system. Consulting Service - is provided by its consulting services group which consists of business consultants, systems analysts and technical personnel. Outsourcing Service - is flexible by design to meet its clients' changing requirements. Cloud Service consists of cloud services based on cloud computing architecture, such as Salesforce Automation. Its regional service centers in Beijing, Shanghai, Guangzhou, Wuhan, Qingdao, Xi'an, Fuzhou, Hangzhou, Nanjing, Chongqing and Shenzhen.