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Sigma-Aldrich (FRA:SIQ) Asset Turnover : 0.16 (As of Sep. 2015)


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What is Sigma-Aldrich Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Sigma-Aldrich's Revenue for the three months ended in Sep. 2015 was €626 Mil. Sigma-Aldrich's Total Assets for the quarter that ended in Sep. 2015 was €3,890 Mil. Therefore, Sigma-Aldrich's Asset Turnover for the quarter that ended in Sep. 2015 was 0.16.

Asset Turnover is linked to ROE % through Du Pont Formula. Sigma-Aldrich's annualized ROE % for the quarter that ended in Sep. 2015 was 13.68%. It is also linked to ROA % through Du Pont Formula. Sigma-Aldrich's annualized ROA % for the quarter that ended in Sep. 2015 was 10.44%.


Sigma-Aldrich Asset Turnover Historical Data

The historical data trend for Sigma-Aldrich'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.

Sigma-Aldrich Asset Turnover Chart

Sigma-Aldrich Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.83 0.80 0.74 0.69 0.73

Sigma-Aldrich Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 0.18 0.18 0.17 0.16 0.16

Competitive Comparison of Sigma-Aldrich's Asset Turnover

For the Specialty Chemicals subindustry, Sigma-Aldrich'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.


Sigma-Aldrich's Asset Turnover Distribution in the Chemicals Industry

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

* The bar in red indicates where Sigma-Aldrich's Asset Turnover falls into.



Sigma-Aldrich Asset Turnover Calculation

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

Sigma-Aldrich's Asset Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=2258.635/( (2777.65+3402.145)/ 2 )
=2258.635/3089.8975
=0.73

Sigma-Aldrich's Asset Turnover for the quarter that ended in Sep. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2015 )/( (Total Assets (Q: Jun. 2015 )+Total Assets (Q: Sep. 2015 ))/ count )
=626.373/( (3836.646+3943.566)/ 2 )
=626.373/3890.106
=0.16

* 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.


Sigma-Aldrich  (FRA:SIQ) Asset Turnover Explanation

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

Sigma-Aldrich's annulized ROE % for the quarter that ended in Sep. 2015 is

ROE %**(Q: Sep. 2015 )
=Net Income/Total Stockholders Equity
=406.296/2969.703
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(406.296 / 2505.492)*(2505.492 / 3890.106)*(3890.106/ 2969.703)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.22 %*0.6441*1.3099
=ROA %*Equity Multiplier
=10.44 %*1.3099
=13.68 %

Note: The Net Income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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:

Sigma-Aldrich's annulized ROA % for the quarter that ended in Sep. 2015 is

ROA %(Q: Sep. 2015 )
=Net Income/Total Assets
=406.296/3890.106
=(Net Income / Revenue)*(Revenue / Total Assets)
=(406.296 / 2505.492)*(2505.492 / 3890.106)
=Net Margin %*Asset Turnover
=16.22 %*0.6441
=10.44 %

Note: The Net Income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


Sigma-Aldrich Asset Turnover Related Terms

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Sigma-Aldrich (FRA:SIQ) Business Description

Traded in Other Exchanges
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Address
Sigma-Aldrich Corp was incorporated under the laws of the State of Delaware in May 1975. The Company is a life science and a technology company that helps in enhancing human health and safety. The Company manufactures and distributes chemicals, biochemicals and other essential products and equipment products to its customers in research and applied labs as well as in industrial and commercial markets. The Company operates in three units including Research, Applied and SAFC Commercial. The Research unit products and services includes chemicals, reagents and kits, enabling the scientists to discover and develop new drugs and materials; Applied unit products and services includes high quality components and kits, chemical reagents, critical raw materials and certified reference standards, providing customized solutions to and constitute critical components and materials for diagnostic companies, testing laboratories and industrial companies; SAFC Commercial unit's products and services are used by its customers to develop and manufacture pharma, biopharma and electronics products. Its customers include pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies, non-profit organizations, governmental institutions, diagnostic, chemical and electronics companies and hospitals. The Company's trademarks are the brand names; Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haën, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. The Company is subject to extensive regulation by federal, state and local governments and similar international agencies relating to the manufacture, sale and distribution of its products.

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