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Embratel Participacoes (BSP:EBTP4.PFD) Asset Turnover : 0.17 (As of Sep. 2014)


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What is Embratel Participacoes Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Embratel Participacoes's Revenue for the three months ended in Sep. 2014 was R$5,942.83 Mil. Embratel Participacoes's Total Assets for the quarter that ended in Sep. 2014 was R$35,292.12 Mil. Therefore, Embratel Participacoes's Asset Turnover for the quarter that ended in Sep. 2014 was 0.17.

Asset Turnover is linked to ROE % through Du Pont Formula. Embratel Participacoes's annualized ROE % for the quarter that ended in Sep. 2014 was -10.84%. It is also linked to ROA % through Du Pont Formula. Embratel Participacoes's annualized ROA % for the quarter that ended in Sep. 2014 was -4.30%.


Embratel Participacoes Asset Turnover Historical Data

The historical data trend for Embratel Participacoes'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.

Embratel Participacoes Asset Turnover Chart

Embratel Participacoes Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.67 0.61 0.58 0.74 0.67

Embratel Participacoes Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 0.18 0.17 0.16 0.17 0.17

Competitive Comparison of Embratel Participacoes's Asset Turnover

For the Telecom Services subindustry, Embratel Participacoes'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.


Embratel Participacoes's Asset Turnover Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Embratel Participacoes's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Embratel Participacoes's Asset Turnover falls into.


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Embratel Participacoes Asset Turnover Calculation

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

Embratel Participacoes's Asset Turnover for the fiscal year that ended in Dec. 2013 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2013 )/( (Total Assets (A: Dec. 2012 )+Total Assets (A: Dec. 2013 ))/ count )
=21212.169/( (28898.199+34638.559)/ 2 )
=21212.169/31768.379
=0.67

Embratel Participacoes's Asset Turnover for the quarter that ended in Sep. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2014 )/( (Total Assets (Q: Jun. 2014 )+Total Assets (Q: Sep. 2014 ))/ count )
=5942.825/( (34998.125+35586.115)/ 2 )
=5942.825/35292.12
=0.17

* 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.


Embratel Participacoes  (BSP:EBTP4.PFD) Asset Turnover Explanation

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

Embratel Participacoes's annulized ROE % for the quarter that ended in Sep. 2014 is

ROE %**(Q: Sep. 2014 )
=Net Income/Total Stockholders Equity
=-1518.04/14003.912
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1518.04 / 23771.3)*(23771.3 / 35292.12)*(35292.12/ 14003.912)
=Net Margin %*Asset Turnover*Equity Multiplier
=-6.39 %*0.6736*2.5202
=ROA %*Equity Multiplier
=-4.30 %*2.5202
=-10.84 %

Note: The Net Income data used here is four times the quarterly (Sep. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) 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:

Embratel Participacoes's annulized ROA % for the quarter that ended in Sep. 2014 is

ROA %(Q: Sep. 2014 )
=Net Income/Total Assets
=-1518.04/35292.12
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1518.04 / 23771.3)*(23771.3 / 35292.12)
=Net Margin %*Asset Turnover
=-6.39 %*0.6736
=-4.30 %

Note: The Net Income data used here is four times the quarterly (Sep. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) 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.


Embratel Participacoes Asset Turnover Related Terms

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Embratel Participacoes Business Description

Traded in Other Exchanges
N/A
Address
Embratel Participacoes SA was incorporated on May 22, 1998. The Company, through its subsidiaries, provides telecommunication services to residential customers, small businesses, medium companies and large corporations. It offers local and long distance domestic and international calling services.

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