Poseidon Concepts (TSX:PSN) Asset Turnover : 0.21 (As of Sep. 2012)

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What is Poseidon Concepts Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Poseidon Concepts's Revenue for the three months ended in Sep. 2012 was C$41.1 Mil. Poseidon Concepts's Total Assets for the quarter that ended in Sep. 2012 was C$197.3 Mil. Therefore, Poseidon Concepts's Asset Turnover for the quarter that ended in Sep. 2012 was 0.21.

Asset Turnover is linked to ROE % through Du Pont Formula. Poseidon Concepts's annualized ROE % for the quarter that ended in Sep. 2012 was 27.51%. It is also linked to ROA % through Du Pont Formula. Poseidon Concepts's annualized ROA % for the quarter that ended in Sep. 2012 was 15.88%.

Poseidon Concepts Asset Turnover Historical Data

The historical data trend for Poseidon Concepts'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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Poseidon Concepts Asset Turnover Chart

Poseidon Concepts Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Asset Turnover

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0.26

0.34

0.14

0.03

0.47

Poseidon Concepts Quarterly Data
	Dec06	Dec07	Dec08	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
Asset Turnover	Get a 7-Day Free Trial										0.08	0.16	0.43	0.33	0.21

Competitive Comparison of Poseidon Concepts's Asset Turnover

For the Oil & Gas Equipment & Services subindustry, Poseidon Concepts'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.

Poseidon Concepts's Asset Turnover Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Poseidon Concepts's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Poseidon Concepts's Asset Turnover falls into.

Poseidon Concepts Asset Turnover Calculation

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

Poseidon Concepts's Asset Turnover for the fiscal year that ended in Dec. 2011 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2011 )	/	( (Total Assets (A: Dec. 2010 )	+	Total Assets (A: Dec. 2011 ))	/ count )
=	78.767	/	( (231.994	+	102.884)	/ 2 )
=	78.767	/	167.439
=	0.47

Poseidon Concepts's Asset Turnover for the quarter that ended in Sep. 2012 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Sep. 2012 )	/	( (Total Assets (Q: Jun. 2012 )	+	Total Assets (Q: Sep. 2012 ))	/ count )
=	41.116	/	( (192.759	+	201.781)	/ 2 )
=	41.116	/	197.27
=	0.21

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.

Poseidon Concepts (TSX:PSN) Asset Turnover Explanation

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

Poseidon Concepts's annulized ROE % for the quarter that ended in Sep. 2012 is

	ROE %^**		(Q: Sep. 2012 )
=	Net Income	/	Total Stockholders Equity
=	31.328	/	113.8795
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(31.328 / 164.464)	*	(164.464 / 197.27)	*	(197.27/ 113.8795)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	19.05 %	*	0.8337	*	1.7323
=	ROA %	*	Equity Multiplier
=	15.88 %	*	1.7323
=	27.51 %

Note: The Net Income data used here is four times the quarterly (Sep. 2012) net income data. The Revenue data used here is four times the quarterly (Sep. 2012) 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:

Poseidon Concepts's annulized ROA % for the quarter that ended in Sep. 2012 is

	ROA %		(Q: Sep. 2012 )
=	Net Income	/	Total Assets
=	31.328	/	197.27
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(31.328 / 164.464)	*	(164.464 / 197.27)
=	Net Margin %	*	Asset Turnover
=	19.05 %	*	0.8337
=	15.88 %

Note: The Net Income data used here is four times the quarterly (Sep. 2012) net income data. The Revenue data used here is four times the quarterly (Sep. 2012) 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.

Poseidon Concepts Asset Turnover Related Terms

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