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Allocate Software (LSE:ALLA) Asset Turnover : 0.60 (As of May. 2014)


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What is Allocate Software Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Allocate Software's Revenue for the six months ended in May. 2014 was £22.75 Mil. Allocate Software's Total Assets for the quarter that ended in May. 2014 was £38.07 Mil. Therefore, Allocate Software's Asset Turnover for the quarter that ended in May. 2014 was 0.60.

Asset Turnover is linked to ROE % through Du Pont Formula. Allocate Software's annualized ROE % for the quarter that ended in May. 2014 was 52.96%. It is also linked to ROA % through Du Pont Formula. Allocate Software's annualized ROA % for the quarter that ended in May. 2014 was 23.11%.


Allocate Software Asset Turnover Historical Data

The historical data trend for Allocate Software'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.

Allocate Software Asset Turnover Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.88 0.81 0.91 0.89 0.95

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
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 0.53 0.41 0.53 0.46 0.60

Competitive Comparison of Allocate Software's Asset Turnover

For the Software - Application subindustry, Allocate Software'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.


Allocate Software's Asset Turnover Distribution in the Software Industry

For the Software industry and Technology sector, Allocate Software's Asset Turnover distribution charts can be found below:

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



Allocate Software Asset Turnover Calculation

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

Allocate Software's Asset Turnover for the fiscal year that ended in May. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: May. 2014 )/( (Total Assets (A: May. 2013 )+Total Assets (A: May. 2014 ))/ count )
=40.022/( (41.687+42.508)/ 2 )
=40.022/42.0975
=0.95

Allocate Software's Asset Turnover for the quarter that ended in May. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: May. 2014 )/( (Total Assets (Q: Nov. 2013 )+Total Assets (Q: May. 2014 ))/ count )
=22.746/( (33.633+42.508)/ 2 )
=22.746/38.0705
=0.60

* 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.


Allocate Software  (LSE:ALLA) Asset Turnover Explanation

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

Allocate Software's annulized ROE % for the quarter that ended in May. 2014 is

ROE %**(Q: May. 2014 )
=Net Income/Total Stockholders Equity
=8.798/16.611
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(8.798 / 45.492)*(45.492 / 38.0705)*(38.0705/ 16.611)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.34 %*1.1949*2.2919
=ROA %*Equity Multiplier
=23.11 %*2.2919
=52.96 %

Note: The Net Income data used here is two times the semi-annual (May. 2014) net income data. The Revenue data used here is two times the semi-annual (May. 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:

Allocate Software's annulized ROA % for the quarter that ended in May. 2014 is

ROA %(Q: May. 2014 )
=Net Income/Total Assets
=8.798/38.0705
=(Net Income / Revenue)*(Revenue / Total Assets)
=(8.798 / 45.492)*(45.492 / 38.0705)
=Net Margin %*Asset Turnover
=19.34 %*1.1949
=23.11 %

Note: The Net Income data used here is two times the semi-annual (May. 2014) net income data. The Revenue data used here is two times the semi-annual (May. 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.


Allocate Software Asset Turnover Related Terms

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Allocate Software (LSE:ALLA) Business Description

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Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.

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