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Invensys (FRA:SBPD) Asset Turnover : 0.41 (As of Sep. 2013)


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What is Invensys Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Invensys's Revenue for the six months ended in Sep. 2013 was €1,023 Mil. Invensys's Total Assets for the quarter that ended in Sep. 2013 was €2,492 Mil. Therefore, Invensys's Asset Turnover for the quarter that ended in Sep. 2013 was 0.41.

Asset Turnover is linked to ROE % through Du Pont Formula. Invensys's annualized ROE % for the quarter that ended in Sep. 2013 was 354.60%. It is also linked to ROA % through Du Pont Formula. Invensys's annualized ROA % for the quarter that ended in Sep. 2013 was 140.16%.


Invensys Asset Turnover Historical Data

The historical data trend for Invensys'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.

Invensys Asset Turnover Chart

Invensys Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.09 1.13 1.26 0.89 0.84

Invensys Semi-Annual Data
Mar03 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13
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 0.62 0.27 0.46 0.43 0.41

Competitive Comparison of Invensys's Asset Turnover

For the Specialty Industrial Machinery subindustry, Invensys'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.


Invensys's Asset Turnover Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Invensys's Asset Turnover distribution charts can be found below:

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



Invensys Asset Turnover Calculation

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

Invensys's Asset Turnover for the fiscal year that ended in Mar. 2013 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Mar. 2013 )/( (Total Assets (A: Mar. 2012 )+Total Assets (A: Mar. 2013 ))/ count )
=2086.612/( (2389.581+2588.471)/ 2 )
=2086.612/2489.026
=0.84

Invensys's Asset Turnover for the quarter that ended in Sep. 2013 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2013 )/( (Total Assets (Q: Mar. 2013 )+Total Assets (Q: Sep. 2013 ))/ count )
=1023.454/( (2588.471+2395.975)/ 2 )
=1023.454/2492.223
=0.41

* 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.


Invensys  (FRA:SBPD) Asset Turnover Explanation

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

Invensys's annulized ROE % for the quarter that ended in Sep. 2013 is

ROE %**(Q: Sep. 2013 )
=Net Income/Total Stockholders Equity
=3493.042/985.064
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3493.042 / 2046.908)*(2046.908 / 2492.223)*(2492.223/ 985.064)
=Net Margin %*Asset Turnover*Equity Multiplier
=170.65 %*0.8213*2.53
=ROA %*Equity Multiplier
=140.16 %*2.53
=354.60 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2013) net income data. The Revenue data used here is two times the semi-annual (Sep. 2013) 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:

Invensys's annulized ROA % for the quarter that ended in Sep. 2013 is

ROA %(Q: Sep. 2013 )
=Net Income/Total Assets
=3493.042/2492.223
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3493.042 / 2046.908)*(2046.908 / 2492.223)
=Net Margin %*Asset Turnover
=170.65 %*0.8213
=140.16 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2013) net income data. The Revenue data used here is two times the semi-annual (Sep. 2013) 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.


Invensys Asset Turnover Related Terms

Thank you for viewing the detailed overview of Invensys's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Invensys (FRA:SBPD) Business Description

Traded in Other Exchanges
N/A
Address
Invensys PLC is a technology company that works in partnership with industrial and commercial customers to design and supply advanced technologies that optimise operational performance and profitability. The Company is grouped into four new business segments - Software, Industrial Automation, Energy Controls and Appliance. The Company's divisions include; Invensys Operations Management which is a technology, software and consulting business that creates and applies technologies to enable the safe and efficient operation of industrial and commercial operations such as oil refineries, fossil fuel and nuclear power plants, petrochemical works and other manufacturing sites. Invensys Controls designs, engineers and manufactures products, components, systems and services used in appliances, heating, air conditioning/cooling and refrigeration products across a range of industries in residential and commercial markets. The Software segment consists of the software businesses previously within Invensys Operations Management and includes Wonderware, SimSciTM and Avantis brands. Industrial Automation segment consists of the systems businesses of our Foxboro distributed control systems (DCS) and Triconex safety systems with the addition of the Foxboro measurement and instrumentation products previously within the equipment business of Invensys Operations Management. Energy Controls segment consists of the Eurotherm and IMServ businesses previously included within the equipment business of Invensys Operations Management, together with the residential heating and commercial businesses that were formerly part of Invensys Controls. Appliance segment consists of the Appliance controls line of business previously within Invensys Controls, together with the appliance replacement parts business formerly within Wholesale, also part of the former Invensys Controls.

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