Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. athenahealth's Revenue for the
three
months ended in Sep. 2018 was $330 Mil. athenahealth's Total Assets for the quarter that ended in Sep. 2018 was $1,558 Mil. Therefore, athenahealth's Asset Turnover for the quarter that ended in Sep. 2018 was 0.21.
Asset Turnover is linked to ROE % through Du Pont Formula. athenahealth's annualizedROE % for the quarter that ended in Sep. 2018 was 10.10%. It is also linked to ROA % through Du Pont Formula. athenahealth's annualizedROA % for the quarter that ended in Sep. 2018 was 6.78%.
athenahealth Asset Turnover Historical Data
The historical data trend for athenahealth'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.
Competitive Comparison of athenahealth's Asset Turnover
For the Health Information Services subindustry, athenahealth'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.
athenahealth's Asset Turnover Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, athenahealth's Asset Turnover distribution charts can be found below:
* The bar in red indicates where athenahealth's Asset Turnover falls into.
athenahealth Asset Turnover Calculation
Asset Turnover measures how quickly a company turns over its asset through sales.
athenahealth's Asset Turnover for the fiscal year that ended in Dec. 2017 is calculated as
* 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.
Note:
The Net Income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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:
athenahealth's annulizedROA % for the quarter that ended in Sep. 2018 is
Note:
The Net Income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.
athenahealth Asset Turnover Related Terms
Thank you for viewing the detailed overview of athenahealth's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.
Athenahealth provides healthcare IT (HCIT) services through cloud-based and mobile application products largely for smaller to midsize medical groups and health systems. Their services include revenue cycle and practice management, electronic health records, patient engagement, population health management, and care coordination. The business services segment generates 96% of revenue, which provides cloud-based solutions and support to healthcare providers. Athenahealth is headquartered in Waltham, Massachusetts.
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