Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Forest Laboratories's Revenue for the
three
months ended in Mar. 2014 was €790 Mil. Forest Laboratories's Total Assets for the quarter that ended in Mar. 2014 was €7,651 Mil. Therefore, Forest Laboratories's Asset Turnover for the quarter that ended in Mar. 2014 was 0.10.
Asset Turnover is linked to ROE % through Du Pont Formula. Forest Laboratories's annualizedROE % for the quarter that ended in Mar. 2014 was 3.54%. It is also linked to ROA % through Du Pont Formula. Forest Laboratories's annualizedROA % for the quarter that ended in Mar. 2014 was 2.04%.
Forest Laboratories Asset Turnover Historical Data
The historical data trend for Forest Laboratories'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.
Competitive Comparison of Forest Laboratories's Asset Turnover
For the Drug Manufacturers - Specialty & Generic subindustry, Forest Laboratories'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.
Forest Laboratories's Asset Turnover Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Forest Laboratories's Asset Turnover distribution charts can be found below:
* The bar in red indicates where Forest Laboratories's Asset Turnover falls into.
Forest Laboratories Asset Turnover Calculation
Asset Turnover measures how quickly a company turns over its asset through sales.
Forest Laboratories's Asset Turnover for the fiscal year that ended in Mar. 2014 is calculated as
* 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.
Note:
The Net Income data used here is four times the quarterly (Mar. 2014) net income data. The Revenue data used here is four times the quarterly (Mar. 2014) 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:
Forest Laboratories's annulizedROA % for the quarter that ended in Mar. 2014 is
Note:
The Net Income data used here is four times the quarterly (Mar. 2014) net income data. The Revenue data used here is four times the quarterly (Mar. 2014) 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.
Forest Laboratories Asset Turnover Related Terms
Thank you for viewing the detailed overview of Forest Laboratories's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
Forest Laboratories (FRA:FQX) Business Description
Forest Laboratories, Inc. is a Delaware corporation organized in 1956. The Company develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription. The Company's most important United States products are marketed directly, or 'detailed,' to physicians by its salesforces. It emphasizes detailing to physicians of those branded ethical drugs which have the most potential for growth and benefit to patients. The Company also develops and introduces new products, including products developed in collaboration with licensing partners. The Company's products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. It actively promotes in the United States those branded products which have the most potential for growth and patient benefit, and which enable its salesforces to concentrate on groups of physicians who are high prescribers of its products. Such products include: Lexapro, its SSRI for the treatment of major depression in adults and adolescents and GAD in adults; Namenda, its NMDA antagonist for the treatment of moderate and severe Alzheimer's disease; Bystolic, its beta-blocker for the treatment of hypertension; and Savella, its newest product, an SNRI for the management of fibromyalgia. The Company's United Kingdom and Ireland subsidiaries sell both ethical products and over-the-counter preparations. Their most important products include Sudocrem, a topical preparation for the treatment of diaper rash; Colomycin, an antibiotic used in the treatment of cystic fibrosis; Infacol, used to treat infant colic; and Exorex, used in the treatment of eczema and psoriasis. The pharmaceutical industry is subject to comprehensive government regulation which substantially increases the difficulty and cost incurred in obtaining the approval to market newly proposed drug products and maintaining the approval to market existing drugs.
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