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WABCO Holdings (WABCO Holdings) Asset Turnover : 0.19 (As of Mar. 2020)


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What is WABCO Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. WABCO Holdings's Revenue for the three months ended in Mar. 2020 was $746 Mil. WABCO Holdings's Total Assets for the quarter that ended in Mar. 2020 was $4,027 Mil. Therefore, WABCO Holdings's Asset Turnover for the quarter that ended in Mar. 2020 was 0.19.

Asset Turnover is linked to ROE % through Du Pont Formula. WABCO Holdings's annualized ROE % for the quarter that ended in Mar. 2020 was 7.59%. It is also linked to ROA % through Du Pont Formula. WABCO Holdings's annualized ROA % for the quarter that ended in Mar. 2020 was 2.50%.


WABCO Holdings Asset Turnover Historical Data

The historical data trend for WABCO Holdings'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.

WABCO Holdings Asset Turnover Chart

WABCO Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.05 1.00 0.90 0.95 0.88

WABCO Holdings Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 0.24 0.23 0.20 0.19 0.19

Competitive Comparison of WABCO Holdings's Asset Turnover

For the Auto Parts subindustry, WABCO Holdings'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.


WABCO Holdings's Asset Turnover Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, WABCO Holdings's Asset Turnover distribution charts can be found below:

* The bar in red indicates where WABCO Holdings's Asset Turnover falls into.



WABCO Holdings Asset Turnover Calculation

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

WABCO Holdings's Asset Turnover for the fiscal year that ended in Dec. 2019 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2019 )/( (Total Assets (A: Dec. 2018 )+Total Assets (A: Dec. 2019 ))/ count )
=3421.4/( (3738.6+4037.1)/ 2 )
=3421.4/3887.85
=0.88

WABCO Holdings's Asset Turnover for the quarter that ended in Mar. 2020 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2020 )/( (Total Assets (Q: Dec. 2019 )+Total Assets (Q: Mar. 2020 ))/ count )
=745.7/( (4037.1+4016.9)/ 2 )
=745.7/4027
=0.19

* 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.


WABCO Holdings  (NYSE:WBC) Asset Turnover Explanation

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

WABCO Holdings's annulized ROE % for the quarter that ended in Mar. 2020 is

ROE %**(Q: Mar. 2020 )
=Net Income/Total Stockholders Equity
=100.8/1328.2
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(100.8 / 2982.8)*(2982.8 / 4027)*(4027/ 1328.2)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.38 %*0.7407*3.0319
=ROA %*Equity Multiplier
=2.50 %*3.0319
=7.59 %

Note: The Net Income data used here is four times the quarterly (Mar. 2020) net income data. The Revenue data used here is four times the quarterly (Mar. 2020) 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:

WABCO Holdings's annulized ROA % for the quarter that ended in Mar. 2020 is

ROA %(Q: Mar. 2020 )
=Net Income/Total Assets
=100.8/4027
=(Net Income / Revenue)*(Revenue / Total Assets)
=(100.8 / 2982.8)*(2982.8 / 4027)
=Net Margin %*Asset Turnover
=3.38 %*0.7407
=2.50 %

Note: The Net Income data used here is four times the quarterly (Mar. 2020) net income data. The Revenue data used here is four times the quarterly (Mar. 2020) 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.


WABCO Holdings Asset Turnover Related Terms

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


WABCO Holdings (WABCO Holdings) Business Description

Traded in Other Exchanges
N/A
Address
1220 Pacific Drive, Auburn Hills, MI, USA, 48326-3511
WABCO Holdings Inc is a producer of car and truck safety and efficiency technologies. The product lineup includes driver assistance systems, brake and stability control systems, brake chambers, suspensions, emission control systems, and fleet management systems. The products are developed for cars, busses, trailers, trucks, and utility vehicles. The majority of revenue is generated in Germany and the United States of America.
Executives
Michael T Smith director 190 NW SPANISH RIVER BOULEVARD, SUITE 101, BOCA RATON FL 33431
Sean Deason officer: CFO and Controller C/O WABCO HOLDINGS INC., 2770 RESEARCH DRIVE, ROCHESTER HILLS MI 48309
Thomas Gross director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
G Peter Daloia director
Henry R. Keizer director MONTPELIER HOUSE, 94 PITTS BAY ROAD, PEMBROKE D0 HM 08
David Nicholas Reilly director 300 RENAISSANCE CENTER, M/C: 482-C32-C66, DETROIT MI 48265-3000
Jacques Esculier officer: CHIEF EXECUTIVE OFFICER C/O AMERICAN STANDARD COMPANIES INC, ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Montupet Jean Paul L director PARTNERRE LTD, WELLESLEY HOUSE 90 PITTS BAY RD, PEMBROKE BERMUDA D0 HM 08
Mary L Petrovich director
Prashanth Mahendra-rajah officer: Chief Financial Officer C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Nikhil M Varty officer: President, Americas & VP, M&A CHAUSEE DE WAVRE, 1789 CARE OF WABCO VEHICLE CONTROL SYSTEMS BRUSSELS C9 1160
Donald J Stebbins director C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
John F Fiedler director 200 SOUTH MICHIGAN AVE, CHICAGO IL 60604
Ulrich Michel officer: Senior Vice President and CFO CHAUSEE DE WAVRE, 1789, CARE OF WABCO HOLDINGS INC, BRUSSELS C9 1160
Christopher Anthony Harrison officer: Chief Human Resources Officer 505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170