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ARI Network Services (ARI Network Services) Asset Turnover : 0.23 (As of Apr. 2017)


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What is ARI Network Services Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. ARI Network Services's Revenue for the three months ended in Apr. 2017 was $13.43 Mil. ARI Network Services's Total Assets for the quarter that ended in Apr. 2017 was $59.77 Mil. Therefore, ARI Network Services's Asset Turnover for the quarter that ended in Apr. 2017 was 0.23.

Asset Turnover is linked to ROE % through Du Pont Formula. ARI Network Services's annualized ROE % for the quarter that ended in Apr. 2017 was 18.22%. It is also linked to ROA % through Du Pont Formula. ARI Network Services's annualized ROA % for the quarter that ended in Apr. 2017 was 9.54%.


ARI Network Services Asset Turnover Historical Data

The historical data trend for ARI Network Services'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.

ARI Network Services Asset Turnover Chart

ARI Network Services Annual Data
Trend Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.08 1.12 1.01 0.99 0.96

ARI Network Services Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 0.25 0.25 0.25 0.23

Competitive Comparison of ARI Network Services's Asset Turnover

For the Software - Application subindustry, ARI Network Services'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.


ARI Network Services's Asset Turnover Distribution in the Software Industry

For the Software industry and Technology sector, ARI Network Services's Asset Turnover distribution charts can be found below:

* The bar in red indicates where ARI Network Services's Asset Turnover falls into.



ARI Network Services Asset Turnover Calculation

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

ARI Network Services's Asset Turnover for the fiscal year that ended in Jul. 2016 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jul. 2016 )/( (Total Assets (A: Jul. 2015 )+Total Assets (A: Jul. 2016 ))/ count )
=47.693/( (49.636+49.343)/ 2 )
=47.693/49.4895
=0.96

ARI Network Services's Asset Turnover for the quarter that ended in Apr. 2017 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Apr. 2017 )/( (Total Assets (Q: Jan. 2017 )+Total Assets (Q: Apr. 2017 ))/ count )
=13.425/( (59.383+60.158)/ 2 )
=13.425/59.7705
=0.22

* 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.


ARI Network Services  (NAS:ARIS) Asset Turnover Explanation

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

ARI Network Services's annulized ROE % for the quarter that ended in Apr. 2017 is

ROE %**(Q: Apr. 2017 )
=Net Income/Total Stockholders Equity
=5.7/31.285
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5.7 / 53.7)*(53.7 / 59.7705)*(59.7705/ 31.285)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.61 %*0.8984*1.9105
=ROA %*Equity Multiplier
=9.54 %*1.9105
=18.22 %

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

ARI Network Services's annulized ROA % for the quarter that ended in Apr. 2017 is

ROA %(Q: Apr. 2017 )
=Net Income/Total Assets
=5.7/59.7705
=(Net Income / Revenue)*(Revenue / Total Assets)
=(5.7 / 53.7)*(53.7 / 59.7705)
=Net Margin %*Asset Turnover
=10.61 %*0.8984
=9.54 %

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


ARI Network Services Asset Turnover Related Terms

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


ARI Network Services (ARI Network Services) Business Description

Traded in Other Exchanges
N/A
Address
ARI Network Services Inc was incorporated in Wisconsin in 1981. The Company creates software-as-a-service and data-as-a-service solutions that help equipment manufacturers, distributors and dealers in selected vertical markets Sell More Stuff!TM online and in-store. Its SaaS and DaaS solutions include eCommerce-enabled websites, which provide a web presence for dealers and serve as a platform for driving leads and eCommerce sales, eCatalogs, which drive sales of inventory and PG&A both online and within the dealership, and lead management software designed to increase sales for dealers through more efficient management and improved closure of leads. Its SaaS and DaaS solutions are sold through its internal sales force and are comprised of recurring hosting, license and eCatalog subscriptions. Customers typically sign annual, auto-renewing contracts. Its eCommerce-enabled websites provide consumers with information about a dealership and its product lines and allow consumers to obtain information on whole goods and purchase PG&A through the dealers website 24 hours a day, 7 days a week. Its website solutions are tailored to each of the vertical markets it serves and tightly integrated with its electronic library of inventory and PG&A content. The Company also offers a mobile solution that allows dealers websites to be fully functional on smart mobile phones. Its eCatalog solutions, which encompass its PartSmart, PartSmart Web and PartStream products, leverage its library of electronic whole goods and PG&A content to allow distributors and dealers to view and interact with this information to efficiently support the sales and service of equipment. Its SaaS solution, Footsteps, is designed to efficiently manage and nurture generated leads, increasing conversion rates and ultimately revenues for its customers. It also offers solutions, which include search engine marketing, software and website customization services, website hosting, and document transfer and communication services. Competition for its products and services varies by product and by vertical market. In eCatalogs, it competes with Snap-on Business Solutions, which designs and delivers eCatalogs, accessory sales tools, and manufacturer network development services, mainly to the automotive, powersports, OPE, construction, agriculture and mining markets.
Executives
Newell Robert Y Iv director 2309 BERING DRIVE, SAN JOSE CA 95131
Roy W Olivier director, officer: President and CEO 11425 WEST LAKE PARK DRIVE, SUITE 900, MILWAUKEE WI 53224
Chad J. Cooper director 10850 WEST PARK PLACE, SUITE 1200, MILWAUKEE WI 53224
Wynnefield Partners Small Cap Value Lp 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Nelson Obus 10 percent owner
Wynnefield Capital Management Llc 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Joshua Landes 10 percent owner
Wynnefield Capital Inc 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Small Cap Value Offshore Fund Ltd 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Dwight Mamanteo director C/O GERSTEN SAVAGE LLP 600 LEXINGTON AVE., 9TH FLOOR NEW YORK NY 10022
12 West Capital Management Lp 10 percent owner 475 TENTH AVENUE, 14TH FLOOR, NEW YORK NY 10018