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Kansas City Southern (Kansas City Southern) Asset Turnover : 0.07 (As of Sep. 2021)


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What is Kansas City Southern Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Kansas City Southern's Revenue for the three months ended in Sep. 2021 was $744 Mil. Kansas City Southern's Total Assets for the quarter that ended in Sep. 2021 was $10,468 Mil. Therefore, Kansas City Southern's Asset Turnover for the quarter that ended in Sep. 2021 was 0.07.

Asset Turnover is linked to ROE % through Du Pont Formula. Kansas City Southern's annualized ROE % for the quarter that ended in Sep. 2021 was 16.24%. It is also linked to ROA % through Du Pont Formula. Kansas City Southern's annualized ROA % for the quarter that ended in Sep. 2021 was 5.97%.


Kansas City Southern Asset Turnover Historical Data

The historical data trend for Kansas City Southern'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.

Kansas City Southern Asset Turnover Chart

Kansas City Southern Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.28 0.29 0.30 0.30 0.27

Kansas City Southern Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 0.06 0.07 0.07 0.07 0.07

Competitive Comparison of Kansas City Southern's Asset Turnover

For the Railroads subindustry, Kansas City Southern'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.


Kansas City Southern's Asset Turnover Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Kansas City Southern's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Kansas City Southern's Asset Turnover falls into.



Kansas City Southern Asset Turnover Calculation

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

Kansas City Southern's Asset Turnover for the fiscal year that ended in Dec. 2020 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=2632.6/( (9786.8+9964)/ 2 )
=2632.6/9875.4
=0.27

Kansas City Southern's Asset Turnover for the quarter that ended in Sep. 2021 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2021 )/( (Total Assets (Q: Jun. 2021 )+Total Assets (Q: Sep. 2021 ))/ count )
=744/( (10393.7+10542.8)/ 2 )
=744/10468.25
=0.07

* 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.


Kansas City Southern  (NYSE:KSU) Asset Turnover Explanation

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

Kansas City Southern's annulized ROE % for the quarter that ended in Sep. 2021 is

ROE %**(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=624.8/3847.15
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(624.8 / 2976)*(2976 / 10468.25)*(10468.25/ 3847.15)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.99 %*0.2843*2.721
=ROA %*Equity Multiplier
=5.97 %*2.721
=16.24 %

Note: The Net Income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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:

Kansas City Southern's annulized ROA % for the quarter that ended in Sep. 2021 is

ROA %(Q: Sep. 2021 )
=Net Income/Total Assets
=624.8/10468.25
=(Net Income / Revenue)*(Revenue / Total Assets)
=(624.8 / 2976)*(2976 / 10468.25)
=Net Margin %*Asset Turnover
=20.99 %*0.2843
=5.97 %

Note: The Net Income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.


Kansas City Southern Asset Turnover Related Terms

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


Kansas City Southern (Kansas City Southern) Business Description

Traded in Other Exchanges
N/A
Address
427 West 12th Street, Kansas City, MO, USA, 64105
Kansas City Southern, the smallest Class I railroad, derives about half of its $2.6 billion revenue on 3,400 miles of track in the Central and Southern United States. Remaining sales are produced by operating concessions on 3,300 miles of rail in Mexico and 47 miles of track adjacent to the Panama Canal. KCS' freight includes industrial and forest products (around 21% of total revenue), chemicals and petroleum (26%), agriculture and minerals (18%), intermodal (13%), energy (9%), and autos (9%); other revenue stems from switching, demurrage, and the like.
Executives
Warren K Erdman officer: Executive Vice President
Lora S Cheatum officer: Sr. VP - Human Resources KANSAS CITY SOUTHERN PO BOX 219335 KANSAS CITY MO 64121
Suzanne M Grafton officer: VP & Chief Accounting Officer 427 W 12TH STREET KANSAS CITY MO 64105
Del Cueto Cuevas Oscar Augusto officer: President & Exec Rep of Sub 427 W 12TH STREET KANSAS CITY MO 64105
Michael W Upchurch officer: EVP & Chief Financial Officer KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Patrick J Ottensmeyer officer: President & CEO PO BOX 219335, KANSAS CITY MO 64121
Adam J Godderz officer: SVP Chief Legal Ofc & Corp Sec 427 W 12TH STREET KANSAS CITY MO 64105
Brian D. Hancock officer: EVP & Chief Innovation Officer KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Michael J. Naatz officer: EVP & Chief Marketing Officer 10990 ROE AVE, OVERLAND PARK KS 66211
Thomas A Mcdonnell director C/O KANSAS CITY SOUTHERN, 427 W 12TH STREET, KANSAS CITY MO 64105
Garza Santos David F director AV. INDUSTRIALES DEL PONIENTE NO. 2300 SANTA CATARINA, N.L. O5 66350
Robert J Druten director 6503 SENECA ROAD, MISSION HILLS KS 66208
Jeffrey M Songer officer: EVP & COO KANSAS CITY SOUTHERN PO BOX 219335 KANSAS CITY MO 64121
Janet H Kennedy director KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Lydia I Beebe director 13403 NORTHWEST FREEWAY, HOUSTON TX 77040

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