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Mentor Graphics (Mentor Graphics) Asset Turnover : 0.23 (As of Jan. 2017)


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What is Mentor Graphics Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Mentor Graphics's Revenue for the three months ended in Jan. 2017 was $478 Mil. Mentor Graphics's Total Assets for the quarter that ended in Jan. 2017 was $2,097 Mil. Therefore, Mentor Graphics's Asset Turnover for the quarter that ended in Jan. 2017 was 0.23.

Asset Turnover is linked to ROE % through Du Pont Formula. Mentor Graphics's annualized ROE % for the quarter that ended in Jan. 2017 was 37.72%. It is also linked to ROA % through Du Pont Formula. Mentor Graphics's annualized ROA % for the quarter that ended in Jan. 2017 was 23.48%.


Mentor Graphics Asset Turnover Historical Data

The historical data trend for Mentor Graphics'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.

Mentor Graphics Asset Turnover Chart

Mentor Graphics Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 0.63 0.63 0.58 0.59

Mentor Graphics Quarterly Data
Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17
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 0.12 0.14 0.17 0.23

Competitive Comparison of Mentor Graphics's Asset Turnover

For the Software - Application subindustry, Mentor Graphics'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.


Mentor Graphics's Asset Turnover Distribution in the Software Industry

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

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



Mentor Graphics Asset Turnover Calculation

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

Mentor Graphics's Asset Turnover for the fiscal year that ended in Jan. 2017 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jan. 2017 )/( (Total Assets (A: Jan. 2016 )+Total Assets (A: Jan. 2017 ))/ count )
=1282.467/( (2064.364+2261.185)/ 2 )
=1282.467/2162.7745
=0.59

Mentor Graphics's Asset Turnover for the quarter that ended in Jan. 2017 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jan. 2017 )/( (Total Assets (Q: Oct. 2016 )+Total Assets (Q: Jan. 2017 ))/ count )
=477.968/( (1933.575+2261.185)/ 2 )
=477.968/2097.38
=0.23

* 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.


Mentor Graphics  (NAS:MENT) Asset Turnover Explanation

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

Mentor Graphics's annulized ROE % for the quarter that ended in Jan. 2017 is

ROE %**(Q: Jan. 2017 )
=Net Income/Total Stockholders Equity
=492.412/1305.3795
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(492.412 / 1911.872)*(1911.872 / 2097.38)*(2097.38/ 1305.3795)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.76 %*0.9116*1.6067
=ROA %*Equity Multiplier
=23.48 %*1.6067
=37.72 %

Note: The Net Income data used here is four times the quarterly (Jan. 2017) net income data. The Revenue data used here is four times the quarterly (Jan. 2017) 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:

Mentor Graphics's annulized ROA % for the quarter that ended in Jan. 2017 is

ROA %(Q: Jan. 2017 )
=Net Income/Total Assets
=492.412/2097.38
=(Net Income / Revenue)*(Revenue / Total Assets)
=(492.412 / 1911.872)*(1911.872 / 2097.38)
=Net Margin %*Asset Turnover
=25.76 %*0.9116
=23.48 %

Note: The Net Income data used here is four times the quarterly (Jan. 2017) net income data. The Revenue data used here is four times the quarterly (Jan. 2017) 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.


Mentor Graphics Asset Turnover Related Terms

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Mentor Graphics (Mentor Graphics) Business Description

Traded in Other Exchanges
N/A
Address
Mentor Graphics is a provider of electronic design automation technology for software and hardware design solutions. It tailors its technologies for manufacturers in a variety of end markets, including communications, consumer electronics, military and aerospace, and transportation industries. Its products enable engineers to overcome complicated electronic design challenges by improving the accuracy of complex designs. The firm generates revenue primarily through licensing its software and hardware products to manufacturers. It derives roughly half of its revenue in North America, with the rest coming from Europe, Japan, and the Pacific Rim countries.
Executives
Cheryl L Shavers director 400 COLLINS ROAD NE, M/S 124-323, CEDAR RAPIDS IA 52498
Walden C Rhines director, officer: Chairman and CEO C/O TRIQUINT SEMICONDUCTOR INC, 2300 NE BROOKWOOD PKWY, HILLSBORO OR 97124
Jeffrey Stafeil director 1707 PADDINGTON CIRCLE, KESWICK VA 22947
J Daniel Mccranie director C/O ENOVIX CORPORATION, 3501 W. WARREN AVENUE, FREMONT CA 94538
Keith Barnes director 10100 N TANTAU AVE, CUPERTINO CA 95014-2540
Gregory K Hinckley officer: President C/OMENTOR GRAPHICS CORP, 8005 SW BOECKMAN ROAD, WILSONVILLE OR 97070-7777
Paul Anthony Mascarenas director 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Peter L Bonfield director C/OMENTOR GRAPHICS CORP, 8005 SW BOECKMAN ROAD, WILSONVILLE OR 97070-7777
Carl C Icahn other: NO LONGER SUBJECT TO SEC. 16 C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
David S. Schechter director C/O ICAHN CAPITAL LP, 767 FIFTH AVENUE, SUITE 4700, NEW YORK NY 10153
Jose Maria Alapont director 5725 DELPHI DRIVE, TROY MI 48098
Gary Meyers director
High River Limited Partnership 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Partners Master Fund Ii L.p. 10 percent owner 445 HAMILTON AVENUE, SUITE 1210, WHITE PLAINS NY 10601
Icahn Partners Master Fund Iii L.p. 10 percent owner 445 HAMILTON AVENUE, SUITE 1210, WHITE PLAINS NY 10601