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Navient Corporation  (NYSE:ISM) Asset Turnover: 0.00 (As of . 20)

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Navient Corporation's Revenue for the six months ended in . 20 was \$ Mil. Navient Corporation's Total Assets for the quarter that ended in . 20 was \$ Mil. Therefore, Navient Corporation's asset turnover for the quarter that ended in . 20 was 0.00.

Asset Turnover is linked to ROE % through Du Pont Formula. Navient Corporation's annualized ROE % for the quarter that ended in . 20 was %. It is also linked to ROA % through Du Pont Formula. Navient Corporation's annualized ROA % for the quarter that ended in . 20 was %.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Navient Corporation Annual Data

 Asset Turnover

Navient Corporation Semi-Annual Data

 Asset Turnover

Calculation

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

Navient Corporation's Asset Turnover for the fiscal year that ended in . 20 is calculated as

 Asset Turnover = Sales / Average Total Assets = Revenue (A: . 20 ) / ( (Total Assets (A: . 20 ) + Total Assets (A: . 20 )) / 2 ) = / ( ( + ) / 2 ) = / =

Navient Corporation's Asset Turnover for the quarter that ended in . 20 is calculated as

 Asset Turnover = Sales / Average Total Assets = Revenue (Q: . 20 ) / ( (Total Assets (Q: . 20 ) + Total Assets (Q: . 20 )) / 2 ) = / ( ( + ) / 2 ) = / =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Explanation

Asset Turnover is linked to Return on Equity (ROE) through Du Pont Formula.

Navient Corporation's annulized ROE % for the quarter that ended in . 20 is

 ROE % (Q: . 20 ) = Net Income / Total Equity = / = (Net Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Equity) = ( / ) * ( / ) * (/ ) = Net Margin % * Asset Turnover * Leverage Ratio = % * * = ROA % * Leverage Ratio = % * = %

Note: The Net Income data used here is two times the semi-annual (. 20) net income data. The Revenue data used here is two times the semi-annual (. 20) revenue data.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It is also linked to Return on Assets (ROA) through Du Pont Formula:

Navient Corporation's annulized ROA % for the quarter that ended in . 20 is

 ROA % (Q: . 20 ) = Net Income / Total Assets = / = (Net Income / Revenue) * (Revenue / Total Assets) = ( / ) * ( / ) = Net Margin % * Asset Turnover = % * = %

Note: The Net Income data used here is two times the semi-annual (. 20) net income data. The Revenue data used here is two times the semi-annual (. 20) revenue data.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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