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Chime Communications (LSE:CHW) Asset Turnover : 0.47 (As of Jun. 2015)


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What is Chime Communications Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Chime Communications's Revenue for the six months ended in Jun. 2015 was £184.5 Mil. Chime Communications's Total Assets for the quarter that ended in Jun. 2015 was £392.6 Mil. Therefore, Chime Communications's Asset Turnover for the quarter that ended in Jun. 2015 was 0.47.

Asset Turnover is linked to ROE % through Du Pont Formula. Chime Communications's annualized ROE % for the quarter that ended in Jun. 2015 was -1.59%. It is also linked to ROA % through Du Pont Formula. Chime Communications's annualized ROA % for the quarter that ended in Jun. 2015 was -0.74%.


Chime Communications Asset Turnover Historical Data

The historical data trend for Chime Communications'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.

Chime Communications Asset Turnover Chart

Chime Communications Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.33 1.13 1.27 0.94 1.05

Chime Communications Semi-Annual Data
Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 0.48 0.48 0.53 0.50 0.47

Competitive Comparison of Chime Communications's Asset Turnover

For the Advertising Agencies subindustry, Chime Communications'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.


Chime Communications's Asset Turnover Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Chime Communications's Asset Turnover distribution charts can be found below:

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



Chime Communications Asset Turnover Calculation

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

Chime Communications's Asset Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=390.366/( (361.902+384.207)/ 2 )
=390.366/373.0545
=1.05

Chime Communications's Asset Turnover for the quarter that ended in Jun. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jun. 2015 )/( (Total Assets (Q: Dec. 2014 )+Total Assets (Q: Jun. 2015 ))/ count )
=184.486/( (384.207+400.958)/ 2 )
=184.486/392.5825
=0.47

* 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.


Chime Communications  (LSE:CHW) Asset Turnover Explanation

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

Chime Communications's annulized ROE % for the quarter that ended in Jun. 2015 is

ROE %**(Q: Jun. 2015 )
=Net Income/Total Stockholders Equity
=-2.914/183.3195
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-2.914 / 368.972)*(368.972 / 392.5825)*(392.5825/ 183.3195)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.79 %*0.9399*2.1415
=ROA %*Equity Multiplier
=-0.74 %*2.1415
=-1.59 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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:

Chime Communications's annulized ROA % for the quarter that ended in Jun. 2015 is

ROA %(Q: Jun. 2015 )
=Net Income/Total Assets
=-2.914/392.5825
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-2.914 / 368.972)*(368.972 / 392.5825)
=Net Margin %*Asset Turnover
=-0.79 %*0.9399
=-0.74 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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.


Chime Communications Asset Turnover Related Terms

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


Chime Communications (LSE:CHW) Business Description

Traded in Other Exchanges
N/A
Address
Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement. In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.

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