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Foster Wheeler AG (FRA:FWI) Asset Turnover : 0.34 (As of Sep. 2014)


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What is Foster Wheeler AG Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Foster Wheeler AG's Revenue for the three months ended in Sep. 2014 was €667 Mil. Foster Wheeler AG's Total Assets for the quarter that ended in Sep. 2014 was €1,957 Mil. Therefore, Foster Wheeler AG's Asset Turnover for the quarter that ended in Sep. 2014 was 0.34.

Asset Turnover is linked to ROE % through Du Pont Formula. Foster Wheeler AG's annualized ROE % for the quarter that ended in Sep. 2014 was 12.45%. It is also linked to ROA % through Du Pont Formula. Foster Wheeler AG's annualized ROA % for the quarter that ended in Sep. 2014 was 4.04%.


Foster Wheeler AG Asset Turnover Historical Data

The historical data trend for Foster Wheeler AG'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.

Foster Wheeler AG Asset Turnover Chart

Foster Wheeler AG 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 1.57 1.36 1.58 1.27 1.18

Foster Wheeler AG Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 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 0.31 0.31 0.27 0.32 0.34

Competitive Comparison of Foster Wheeler AG's Asset Turnover

For the Engineering & Construction subindustry, Foster Wheeler AG'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.


Foster Wheeler AG's Asset Turnover Distribution in the Construction Industry

For the Construction industry and Industrials sector, Foster Wheeler AG's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Foster Wheeler AG's Asset Turnover falls into.



Foster Wheeler AG Asset Turnover Calculation

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

Foster Wheeler AG'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 )
=2413.708/( (2083.25+2000.399)/ 2 )
=2413.708/2041.8245
=1.18

Foster Wheeler AG'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 )
=667.143/( (1957.441+1956.23)/ 2 )
=667.143/1956.8355
=0.34

* 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.


Foster Wheeler AG  (FRA:FWI) Asset Turnover Explanation

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

Foster Wheeler AG's annulized ROE % for the quarter that ended in Sep. 2014 is

ROE %**(Q: Sep. 2014 )
=Net Income/Total Stockholders Equity
=78.964/634.419
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(78.964 / 2668.572)*(2668.572 / 1956.8355)*(1956.8355/ 634.419)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.96 %*1.3637*3.0845
=ROA %*Equity Multiplier
=4.04 %*3.0845
=12.45 %

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:

Foster Wheeler AG's annulized ROA % for the quarter that ended in Sep. 2014 is

ROA %(Q: Sep. 2014 )
=Net Income/Total Assets
=78.964/1956.8355
=(Net Income / Revenue)*(Revenue / Total Assets)
=(78.964 / 2668.572)*(2668.572 / 1956.8355)
=Net Margin %*Asset Turnover
=2.96 %*1.3637
=4.04 %

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.


Foster Wheeler AG Asset Turnover Related Terms

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Foster Wheeler AG (FRA:FWI) Business Description

Traded in Other Exchanges
N/A
Address
Foster Wheeler AG was formed in 1927. The Company, with its subsidiaries, is a provider of construction and engineering services. The Company serves the oil and gas, oil refining, chemical and petrochemical, environmental, power generation, and power plant operation and maintenance industries. The Company operates through two business groups: its Global Engineering and Construction Group (Global E&C Group) and its Global Power Group. The Global E&C Group operates and designs, engineers, and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, pharmaceutical and biotechnology facilities and related infrastructure, power generation and distribution facilities, and gasification facilities. The group provides engineering, project management and construction management services, and also designs facilities in new or developing market sectors, such as carbon capture and storage, solid fuel-fired integrated gasification combined-cycle power plants, coal-to-liquids, coal-to-chemicals and biofuels. The Global E&C Group additionally performs environmental remediation services. The Global Power Group designs, manufactures and installs steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities. It offers new and retrofit nitrogen-oxide reduction systems, and provides site services related to these products, including construction and erection, maintenance engineering, plant upgrading, and life extensions. The Global Power Group conducts research and development in the areas of combustion, solid, fluid, and gas dynamics, heat transfer, materials, and solid mechanics. Further, this group owns and operates independent power production and waste-to-energy facilities, as well as power generation facilities for the process and petrochemical industries. Companies that compete with Global E&C Group include but are not limited to the following: Bechtel Corporation; Chicago Bridge & Iron Company N.V.; Chiyoda Corporation; Fluor Corporation; Jacobs Engineering Group Inc.; JGC Corporation; KBR, Inc.; Saipem S.p.A.; Technip; Técnicas Reunidas, SA; and WorleyParsons Ltd. Companies that compete with Global Power Group include but are not limited to the following: Alstom Power S.A.; Andritz Group AG; The Babcock & Wilcox Company; Babcock Power Inc.; Dongfang Boiler Works (a subsidiary of Dong Fang Electric Corporation); Doosan-Babcock; Harbin Boiler Co., Ltd.; Hitachi, Ltd.; Metso Corporation; Mitsubishi Heavy Industries Ltd.; and Shanghai Boiler Works Ltd. The operations are subject to certain federal, state and local environmental, occupational health and product safety laws.

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