HUSIPRHCL.PFD (HSBC USA) Asset Turnover: 0.01 (As of Mar. 2016)

What is HSBC USA Asset Turnover?

HSBC USA HUSIPRHCL.PFD Asset Turnover is 0.01 as of Mar. 2016. The stock has 2 warning signs investors should review.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. HSBC USA's Revenue for the three months ended in Mar. 2016 was $1,116.00 Mil. HSBC USA's Total Assets for the quarter that ended in Mar. 2016 was $196,031.00 Mil. Therefore, HSBC USA's Asset Turnover for the quarter that ended in Mar. 2016 was 0.01.

Asset Turnover is linked to ROE % through Du Pont Formula. HSBC USA's annualized ROE % for the quarter that ended in Mar. 2016 was 2.97%. It is also linked to ROA % through Du Pont Formula. HSBC USA's annualized ROA % for the quarter that ended in Mar. 2016 was 0.31%.

HSBC USA (NYSE:HUSIPRHCL.PFD) Asset Turnover Explanation

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

HSBC USA's annulized ROE % for the quarter that ended in Mar. 2016 is

	ROE %^**		(Q: Mar. 2016 )
=	Net Income	/	Total Stockholders Equity
=	616	/	20710.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(616 / 4464)	*	(4464 / 196031)	*	(196031/ 20710.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	13.8 %	*	0.0228	*	9.4653
=	ROA %	*	Equity Multiplier
=	0.31 %	*	9.4653
=	2.97 %

Note: The Net Income data used here is four times the quarterly (Mar. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) 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:

HSBC USA's annulized ROA % for the quarter that ended in Mar. 2016 is

	ROA %		(Q: Mar. 2016 )
=	Net Income	/	Total Assets
=	616	/	196031
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(616 / 4464)	*	(4464 / 196031)
=	Net Margin %	*	Asset Turnover
=	13.8 %	*	0.0228
=	0.31 %

Note: The Net Income data used here is four times the quarterly (Mar. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) 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.

HSBC USA Asset Turnover Related Terms

HSBC USA Asset Turnover Historical Data

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The historical data trend for HSBC USA's Asset Turnover can be seen below:

HSBC USA Asset Turnover Chart

HSBC USA Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

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Dec13

Dec14

Dec15

Asset Turnover

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0.02

HSBC USA Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Asset Turnover	Get a 7-Day Free Trial															0.01	0.01	0.01	0.01	0.01

HUSIPRHCL.PFD vs GHDS, LFGP, NTB: Asset Turnover Comparison

For the Banks - Diversified subindustry, HSBC USA'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.

HSBC USA Asset Turnover vs Banks Industry

For the Banks industry and Financial Services sector, HSBC USA's Asset Turnover distribution charts can be found below:

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

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HSBC USA Asset Turnover Calculation

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

HSBC USA's Asset Turnover for the fiscal year that ended in Dec. 2015 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2015 )	/	( (Total Assets (A: Dec. 2014 )	+	Total Assets (A: Dec. 2015 ))	/ count )
=	4142	/	( (185539	+	188278)	/ 2 )
=	4142	/	186908.5
=	0.02

HSBC USA's Asset Turnover for the quarter that ended in Mar. 2016 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2016 )	/	( (Total Assets (Q: Dec. 2015 )	+	Total Assets (Q: Mar. 2016 ))	/ count )
=	1116	/	( (188278	+	203784)	/ 2 )
=	1116	/	196031
=	0.01

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 0.01 mean?

HSBC USA (HUSIPRHCL.PFD) has a Asset Turnover of 0.01 as of Mar. 2016. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on HSBC USA and its competitors.

Is HSBC USA's Asset Turnover too high?

HSBC USA's current Asset Turnover is 0.01.

How does HSBC USA's Asset Turnover compare to GHDS and LFGP?

HSBC USA's Asset Turnover of 0.01 can be compared against companies in the Banks 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 Banks company?

A good Asset Turnover depends on the Banks 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 HSBC USA and its competitors. HSBC USA's current Asset Turnover is 0.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is HSBC USA stock overvalued right now?

HSBC USA (HUSIPRHCL.PFD) has a current Asset Turnover of 0.01. The current Asset Turnover is 0.01. 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 HSBC USA (HUSIPRHCL.PFD), the current Asset Turnover is 0.01 as of Mar. 2016. 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.

HSBC USA Business Description

Industry Financial Services Banks

Comparable Companies GHDS LFGP NTB EFGXY NBGGY EWBC JBAXY NTIOF FANDY MLYBY SVNLY CM SCBFF CSGKF BCLYF BMO RBS BBVA SMFG BCMXY

Website http://www.us.hsbc.com

HSBC USA Inc is a national banking association. The Company through HSBC Bank USA offers commercial and consumer banking products and related financial services. Its customers include individuals, small businesses, institutions and governments.