DCEL (Digicel Group) Asset Turnover: 0.62 (As of Mar. 2015)

What is Digicel Group Asset Turnover?

Digicel Group DCEL Asset Turnover is 0.62 as of Mar. 2015.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Digicel Group's Revenue for the six months ended in Mar. 2015 was $2,794.11 Mil. Digicel Group's Total Assets for the quarter that ended in Mar. 2015 was $4,540.96 Mil. Therefore, Digicel Group's Asset Turnover for the quarter that ended in Mar. 2015 was 0.62.

Asset Turnover is linked to ROE % through Du Pont Formula. Digicel Group's annualized ROE % for the quarter that ended in Mar. 2015 was 12.23%. It is also linked to ROA % through Du Pont Formula. Digicel Group's annualized ROA % for the quarter that ended in Mar. 2015 was -7.41%.

Digicel Group (NYSE:DCEL) Asset Turnover Explanation

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

Digicel Group's annulized ROE % for the quarter that ended in Mar. 2015 is

	ROE %^**		(Q: Mar. 2015 )
=	Net Income	/	Total Stockholders Equity
=	-336.608	/	-2751.7055
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-336.608 / 5588.22)	*	(5588.22 / 4540.957)	*	(4540.957/ -2751.7055)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-6.02 %	*	1.2306	*	-1.6502
=	ROA %	*	Equity Multiplier
=	-7.41 %	*	-1.6502
=	12.23 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2015) net income data. The Revenue data used here is two times the semi-annual (Mar. 2015) 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:

Digicel Group's annulized ROA % for the quarter that ended in Mar. 2015 is

	ROA %		(Q: Mar. 2015 )
=	Net Income	/	Total Assets
=	-336.608	/	4540.957
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-336.608 / 5588.22)	*	(5588.22 / 4540.957)
=	Net Margin %	*	Asset Turnover
=	-6.02 %	*	1.2306
=	-7.41 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2015) net income data. The Revenue data used here is two times the semi-annual (Mar. 2015) 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.

Digicel Group Asset Turnover Related Terms

Digicel Group Asset Turnover Historical Data

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The historical data trend for Digicel Group's Asset Turnover can be seen below:

Digicel Group Asset Turnover Chart

Digicel Group Annual Data

Trend

Mar13

Mar14

Mar15

Asset Turnover

0.00

0.62

Digicel Group Semi-Annual Data
	Mar13	Mar14	Mar15
Asset Turnover	0.00	0.62	0.62

DCEL vs DIRV, FULO, TOWTF: Asset Turnover Comparison

For the Telecom Services subindustry, Digicel Group'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.

Digicel Group Asset Turnover vs Telecommunication Services Industry

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

* The bar in red indicates where Digicel Group's Asset Turnover falls into.

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Digicel Group Asset Turnover Calculation

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

Digicel Group's Asset Turnover for the fiscal year that ended in Mar. 2015 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Mar. 2015 )	/	( (Total Assets (A: Mar. 2014 )	+	Total Assets (A: Mar. 2015 ))	/ count )
=	2794.11	/	( (4440.479	+	4641.435)	/ 2 )
=	2794.11	/	4540.957
=	0.62

Digicel Group's Asset Turnover for the quarter that ended in Mar. 2015 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2015 )	/	( (Total Assets (Q: Mar. 2014 )	+	Total Assets (Q: Mar. 2015 ))	/ count )
=	2794.11	/	( (4440.479	+	4641.435)	/ 2 )
=	2794.11	/	4540.957
=	0.62

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.

Frequently Asked Questions Learn more about Asset Turnover →

What does a Asset Turnover of 0.62 mean?

Digicel Group (DCEL) has a Asset Turnover of 0.62 as of Mar. 2015. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Digicel Group and its competitors.

Is Digicel Group's Asset Turnover too high?

Digicel Group's current Asset Turnover is 0.62.

How does Digicel Group's Asset Turnover compare to DIRV and FULO?

Digicel Group's Asset Turnover of 0.62 can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Asset Turnover for a Telecommunication Services company?

A good Asset Turnover depends on the Telecommunication Services industry context. However, Asset Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Asset Turnover mean?

A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Digicel Group and its competitors. Digicel Group's current Asset Turnover is 0.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Digicel Group stock overvalued right now?

Digicel Group (DCEL) has a current Asset Turnover of 0.62. The current Asset Turnover is 0.62. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Asset Turnover calculated?

Asset Turnover is calculated from a company's financial statements. For Digicel Group (DCEL), the current Asset Turnover is 0.62 as of Mar. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Digicel Group Business Description

Industry Communication Services Telecommunication Services

Comparable Companies DIRV FULO TOWTF INVT TWER DTGI MTSL WPCS KONE SLXXF TEUM VLTC CCOP GLOW CLRI TELLF NXGH OTEL SYTE FSNN

Website http://www.digicelgroup.com

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.