Real Estate (ASX:RNC) Asset Turnover : 0.37 (As of Dec. 2013)

View and export this data going back to . Start your Free Trial

What is Real Estate Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Real Estate's Revenue for the six months ended in Dec. 2013 was A$15.57 Mil. Real Estate's Total Assets for the quarter that ended in Dec. 2013 was A$42.35 Mil. Therefore, Real Estate's Asset Turnover for the quarter that ended in Dec. 2013 was 0.37.

Asset Turnover is linked to ROE % through Du Pont Formula. Real Estate's annualized ROE % for the quarter that ended in Dec. 2013 was 8.30%. It is also linked to ROA % through Du Pont Formula. Real Estate's annualized ROA % for the quarter that ended in Dec. 2013 was 4.11%.

Real Estate Asset Turnover Historical Data

The historical data trend for Real Estate'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.

Real Estate Asset Turnover Chart

Real Estate Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Asset Turnover

Get a 7-Day Free Trial

0.43

0.49

0.62

1.00

0.65

Real Estate Semi-Annual Data
	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
Asset Turnover	Get a 7-Day Free Trial													0.68	0.33	0.33	0.32	0.37

Competitive Comparison of Real Estate's Asset Turnover

For the Real Estate Services subindustry, Real Estate'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.

Real Estate's Asset Turnover Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Real Estate's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Real Estate's Asset Turnover falls into.

Real Estate Asset Turnover Calculation

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

Real Estate's Asset Turnover for the fiscal year that ended in Jun. 2013 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Jun. 2013 )	/	( (Total Assets (A: Jun. 2012 )	+	Total Assets (A: Jun. 2013 ))	/ count )
=	27.626	/	( (43.159	+	42.357)	/ 2 )
=	27.626	/	42.758
=	0.65

Real Estate's Asset Turnover for the quarter that ended in Dec. 2013 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Dec. 2013 )	/	( (Total Assets (Q: Jun. 2013 )	+	Total Assets (Q: Dec. 2013 ))	/ count )
=	15.571	/	( (42.357	+	42.344)	/ 2 )
=	15.571	/	42.3505
=	0.37

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.

Real Estate (ASX:RNC) Asset Turnover Explanation

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

Real Estate's annulized ROE % for the quarter that ended in Dec. 2013 is

	ROE %^**		(Q: Dec. 2013 )
=	Net Income	/	Total Stockholders Equity
=	1.742	/	20.9995
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(1.742 / 31.142)	*	(31.142 / 42.3505)	*	(42.3505/ 20.9995)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	5.59 %	*	0.7353	*	2.0167
=	ROA %	*	Equity Multiplier
=	4.11 %	*	2.0167
=	8.30 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2013) net income data. The Revenue data used here is two times the semi-annual (Dec. 2013) 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:

Real Estate's annulized ROA % for the quarter that ended in Dec. 2013 is

	ROA %		(Q: Dec. 2013 )
=	Net Income	/	Total Assets
=	1.742	/	42.3505
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(1.742 / 31.142)	*	(31.142 / 42.3505)
=	Net Margin %	*	Asset Turnover
=	5.59 %	*	0.7353
=	4.11 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2013) net income data. The Revenue data used here is two times the semi-annual (Dec. 2013) 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.

Real Estate Asset Turnover Related Terms

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

Real Estate (ASX:RNC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Real Estate Corp Ltd (ASX:RNC) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.run.com.au

Run Corp Limited (RNC) is a specialist residential property management company that operates over 20,000 residential properties under management in Melbourne, Sydney, and Brisbane. During the fiscal year 2008, the company launched a new service, branded Agentplus, providing real estate agents with a packaged back-office solution.

Real Estate (ASX:RNC) Headlines

No Headlines