ELCO (Elcom International) Asset Turnover: 0.56 (As of Jun. 2008)


What is Elcom International Asset Turnover?

Elcom International ELCO Asset Turnover is 0.56 as of Jun. 2008.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Elcom International's Revenue for the three months ended in Jun. 2008 was $1.70 Mil. Elcom International's Total Assets for the quarter that ended in Jun. 2008 was $3.06 Mil. Therefore, Elcom International's Asset Turnover for the quarter that ended in Jun. 2008 was 0.56.

Asset Turnover is linked to ROE % through Du Pont Formula. Elcom International's annualized ROE % for the quarter that ended in Jun. 2008 was 78.54%. It is also linked to ROA % through Du Pont Formula. Elcom International's annualized ROA % for the quarter that ended in Jun. 2008 was -46.50%.

Elcom International  (OTCPK:ELCO) Asset Turnover Explanation

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

Elcom International's annulized ROE % for the quarter that ended in Jun. 2008 is

ROE %**(Q: Jun. 2008 )
=Net Income/Total Stockholders Equity
=-1.424/-1.813
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.424 / 6.8)*(6.8 / 3.0625)*(3.0625/ -1.813)
=Net Margin %*Asset Turnover*Equity Multiplier
=-20.94 %*2.2204*-1.6892
=ROA %*Equity Multiplier
=-46.50 %*-1.6892
=78.54 %

Note: The Net Income data used here is four times the quarterly (Jun. 2008) net income data. The Revenue data used here is four times the quarterly (Jun. 2008) 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:

Elcom International's annulized ROA % for the quarter that ended in Jun. 2008 is

ROA %(Q: Jun. 2008 )
=Net Income/Total Assets
=-1.424/3.0625
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1.424 / 6.8)*(6.8 / 3.0625)
=Net Margin %*Asset Turnover
=-20.94 %*2.2204
=-46.50 %

Note: The Net Income data used here is four times the quarterly (Jun. 2008) net income data. The Revenue data used here is four times the quarterly (Jun. 2008) 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.

Elcom International Asset Turnover Related Terms

Elcom International Asset Turnover Historical Data

* Premium members only.

The historical data trend for Elcom International'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.

Elcom International Asset Turnover Chart

Elcom International Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.80 1.78 0.57 0.60 1.58

Elcom International Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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 0.41 0.41 0.43 0.35 0.56

ELCO vs BVSN, CLCI, DUOT: Asset Turnover Comparison

For the Software - Application subindustry, Elcom International'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.

Elcom International Asset Turnover vs Software Industry

For the Software industry and Technology sector, Elcom International's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Elcom International's Asset Turnover falls into.


Elcom International Asset Turnover Calculation

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

Elcom International's Asset Turnover for the fiscal year that ended in Dec. 2007 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2007 )/( (Total Assets (A: Dec. 2006 )+Total Assets (A: Dec. 2007 ))/ count )
=5.377/( (2.969+3.851)/ 2 )
=5.377/3.41
=1.58

Elcom International's Asset Turnover for the quarter that ended in Jun. 2008 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jun. 2008 )/( (Total Assets (Q: Mar. 2008 )+Total Assets (Q: Jun. 2008 ))/ count )
=1.7/( (3.071+3.054)/ 2 )
=1.7/3.0625
=0.56

* 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.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.56 mean?
Elcom International (ELCO) has a Asset Turnover of 0.56 as of Jun. 2008. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Elcom International and its competitors.
Is Elcom International's Asset Turnover too high?
Elcom International's current Asset Turnover is 0.56.
How does Elcom International's Asset Turnover compare to BVSN and CLCI?
Elcom International's Asset Turnover of 0.56 can be compared against companies in the Software 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 Software company?
A good Asset Turnover depends on the Software 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 Elcom International and its competitors. Elcom International's current Asset Turnover is 0.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elcom International stock overvalued right now?
Elcom International (ELCO) has a current Asset Turnover of 0.56. The current Asset Turnover is 0.56. 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 Elcom International (ELCO), the current Asset Turnover is 0.56 as of Jun. 2008. 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.

Elcom International Business Description

Address 300 Granite Street, Suite 412, Braintree, MA, USA, 02184
Elcom International Inc develops and licenses proprietary software systems that enable users to buy and sell merchandise through computer networks. The company's Personal Electronic Commerce Online System is software that enables clients to automate procurement functions, such as pricing, invoicing, and payment. In addition, users can create electronic marketplaces to conduct online transactions with both suppliers and distributors. PECOS is offered as both licensed software and as a hosted application.