Switch to:
CSX Corp  (NAS:CSX) Asset Turnover: 0.08 (As of Jun. 2017)

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. CSX Corp's Revenue for the three months ended in Jun. 2017 was \$2,933 Mil. CSX Corp's Total Assets for the quarter that ended in Jun. 2017 was \$35,787 Mil. Therefore, CSX Corp's asset turnover for the quarter that ended in Jun. 2017 was 0.08.

Asset Turnover is linked to ROE % through Du Pont Formula. CSX Corp's annualized ROE % for the quarter that ended in Jun. 2017 was 17.55%. It is also linked to ROA % through Du Pont Formula. CSX Corp's annualized ROA % for the quarter that ended in Jun. 2017 was 5.70%.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

CSX Corp Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Asset Turnover 0.39 0.39 0.39 0.35 0.32

CSX Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Asset Turnover 0.08 0.08 0.09 0.08 0.08

Calculation

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

CSX Corp's Asset Turnover for the fiscal year that ended in Dec. 2016 is calculated as

 Asset Turnover = Sales / Average Total Assets = Revenue (A: Dec. 2016 ) / ( (Total Assets (A: Dec. 2015 ) + Total Assets (A: Dec. 2016 )) / 2 ) = 11069 / ( (34745 + 35414) / 2 ) = 11069 / 35079.5 = 0.32

CSX Corp's Asset Turnover for the quarter that ended in Jun. 2017 is calculated as

 Asset Turnover = Sales / Average Total Assets = Revenue (Q: Jun. 2017 ) / ( (Total Assets (Q: Mar. 2017 ) + Total Assets (Q: Jun. 2017 )) / 2 ) = 2933 / ( (35712 + 35861) / 2 ) = 2933 / 35786.5 = 0.08

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Explanation

Asset Turnover is linked to Return on Equity (ROE) through Du Pont Formula.

CSX Corp's annulized ROE % for the quarter that ended in Jun. 2017 is

 ROE % (Q: Jun. 2017 ) = Net Income / Total Equity = 2040 / 11621.5 = (Net Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Equity) = (2040 / 11732) * (11732 / 35786.5) * (35786.5/ 11621.5) = Net Margin % * Asset Turnover * Leverage Ratio = 17.39 % * 0.3278 * 3.0793 = ROA % * Leverage Ratio = 5.70 % * 3.0793 = 17.55 %

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It is also linked to Return on Assets (ROA) through Du Pont Formula:

CSX Corp's annulized ROA % for the quarter that ended in Jun. 2017 is

 ROA % (Q: Jun. 2017 ) = Net Income / Total Assets = 2040 / 35786.5 = (Net Income / Revenue) * (Revenue / Total Assets) = (2040 / 11732) * (11732 / 35786.5) = Net Margin % * Asset Turnover = 17.39 % * 0.3278 = 5.70 %

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Related Terms

From GuruFocus

###### CSX Corporation Announces Third Quarter Earnings

By Marketwired about CSX 2017-10-17 07:30:16

From the Internet

- Fool 2017-10-17 18:59:00

###### CSX 'had some embarrassing situations' this year, CEO tells investors

- cnbc 2017-10-17 14:18:50

###### CSX Q3 Earnings Meet, Rise Y/Y, Revenues Miss Estimates

- Zacks 2017-10-17 10:08:00

###### CSX Predicts Record Efficiency Gains for the Year After Q3 Earnings Results

- theStreet 2017-10-17 10:03:00

###### Csx Corporation 2017 Q3 Results Earnings Call Slides

- Seekingalpha 2017-10-17 09:03:04

###### CSX Corp (CSX) Reports In-Line Earnings in Q3, Revenues Lag

- Zacks 2017-10-17 09:02:00

###### Higher freight rates lift CSX third quarter profit

- cnbc 2017-10-17 08:15:28

###### How to Sleep Well in These Markets (and What to Do With Apple): Market Recon

- theStreet 2017-10-17 07:17:00

###### Goldman Sachs, Netflix and Uber - 5 Things You Must Know Before the Market Opens

- theStreet 2017-10-17 06:12:00

###### 5 Earnings All Stars to Start Off the Week

- Zacks 2017-10-16 17:33:00

###### Transports Week Review J B Hunt Gets Transports Wrong Foot Third Quarter

- Seekingalpha 2017-10-16 12:48:51

###### Csx Anomaly

- Seekingalpha 2017-10-16 11:45:15

###### CSX and CP Q3 Earnings: Here are the Key Predictions

- Zacks 2017-10-16 09:37:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)