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KCG Holdings (KCG Holdings) Asset Turnover : 0.04 (As of Mar. 2017)


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What is KCG Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. KCG Holdings's Revenue for the three months ended in Mar. 2017 was $234 Mil. KCG Holdings's Total Assets for the quarter that ended in Mar. 2017 was $6,122 Mil. Therefore, KCG Holdings's Asset Turnover for the quarter that ended in Mar. 2017 was 0.04.

Asset Turnover is linked to ROE % through Du Pont Formula. KCG Holdings's annualized ROE % for the quarter that ended in Mar. 2017 was 0.95%. It is also linked to ROA % through Du Pont Formula. KCG Holdings's annualized ROA % for the quarter that ended in Mar. 2017 was 0.21%.


KCG Holdings Asset Turnover Historical Data

The historical data trend for KCG Holdings'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.

KCG Holdings Asset Turnover Chart

KCG Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Asset Turnover
Get a 7-Day Free Trial 0.37 0.23 0.18 0.24 0.22

KCG Holdings Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 0.05 0.05 0.03 0.09 0.04

Competitive Comparison of KCG Holdings's Asset Turnover

For the Capital Markets subindustry, KCG Holdings'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.


KCG Holdings's Asset Turnover Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, KCG Holdings's Asset Turnover distribution charts can be found below:

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



KCG Holdings Asset Turnover Calculation

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

KCG Holdings's Asset Turnover for the fiscal year that ended in Dec. 2016 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2016 )/( (Total Assets (A: Dec. 2015 )+Total Assets (A: Dec. 2016 ))/ count )
=1376.773/( (6051.178+6261.287)/ 2 )
=1376.773/6156.2325
=0.22

KCG Holdings's Asset Turnover for the quarter that ended in Mar. 2017 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2017 )/( (Total Assets (Q: Dec. 2016 )+Total Assets (Q: Mar. 2017 ))/ count )
=234.282/( (6261.287+5983.429)/ 2 )
=234.282/6122.358
=0.04

* 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.


KCG Holdings  (NYSE:KCG) Asset Turnover Explanation

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

KCG Holdings's annulized ROE % for the quarter that ended in Mar. 2017 is

ROE %**(Q: Mar. 2017 )
=Net Income/Total Stockholders Equity
=12.848/1352.2975
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12.848 / 937.128)*(937.128 / 6122.358)*(6122.358/ 1352.2975)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.37 %*0.1531*4.5274
=ROA %*Equity Multiplier
=0.21 %*4.5274
=0.95 %

Note: The Net Income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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:

KCG Holdings's annulized ROA % for the quarter that ended in Mar. 2017 is

ROA %(Q: Mar. 2017 )
=Net Income/Total Assets
=12.848/6122.358
=(Net Income / Revenue)*(Revenue / Total Assets)
=(12.848 / 937.128)*(937.128 / 6122.358)
=Net Margin %*Asset Turnover
=1.37 %*0.1531
=0.21 %

Note: The Net Income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.


KCG Holdings Asset Turnover Related Terms

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


KCG Holdings (KCG Holdings) Business Description

Traded in Other Exchanges
N/A
Address
KCG Holdings Inc operates in the financial services sector in United States. It is a comprehensive trading services provider functioning through three segments; Market Making segment is responsible for cash, futures and options markets; Global Execution Services segment comprises agency execution services and trading venues and the Corporate and Other segment contains functions that support the Company's other segments, such as self-clearing services, including stock lending activities. The company generates by far the highest amount of revenues from its Corporate segment.
Executives
Daniel Coleman director, officer: Chief Executive Officer KCG HOLDINGS, INC., 300 VESEY STREET, NEW YORK NY 10282
Peter R. Fisher director 175 WATER STREET, NEW YORK NY 10038
Charles E Haldeman director C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
John C. Morris director C/O VISA INC., P.O. BOX 8999, SAN FRANCISCO CA 94128-8999
Laurie M Shahon director
Gap-w, Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gapstar Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gap Coinvestments Iii, Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gap Coinvestments Iv, Llc 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gap Coinvestments Cda, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners 83, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR NEW YORK NY 10055
General Atlantic Genpar, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
General Atlantic Partners 93, L.p. 10 percent owner, other: *See Remarks 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Jefferies Llc 10 percent owner 520 MADISON AVE., NEW YORK NY 10022

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