Porta Communications (LSE:PTCM) Asset Turnover: 0.76 (As of Dec. 2018)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Porta Communications Asset Turnover?

Porta Communications LSE:PTCM Asset Turnover is 0.76 as of Dec. 2018. The stock has 4 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. Porta Communications's Revenue for the six months ended in Dec. 2018 was £17.33 Mil. Porta Communications's Total Assets for the quarter that ended in Dec. 2018 was £22.67 Mil. Therefore, Porta Communications's Asset Turnover for the quarter that ended in Dec. 2018 was 0.76.

Asset Turnover is linked to ROE % through Du Pont Formula. Porta Communications's annualized ROE % for the quarter that ended in Dec. 2018 was -345.84%. It is also linked to ROA % through Du Pont Formula. Porta Communications's annualized ROA % for the quarter that ended in Dec. 2018 was -21.18%.


Porta Communications  (LSE:PTCM) Asset Turnover Explanation

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

Porta Communications's annulized ROE % for the quarter that ended in Dec. 2018 is

ROE %**(Q: Dec. 2018 )
=Net Income/Total Stockholders Equity
=-4.802/1.3885
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.802 / 34.656)*(34.656 / 22.674)*(22.674/ 1.3885)
=Net Margin %*Asset Turnover*Equity Multiplier
=-13.86 %*1.5284*16.3299
=ROA %*Equity Multiplier
=-21.18 %*16.3299
=-345.84 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2018) net income data. The Revenue data used here is two times the semi-annual (Dec. 2018) 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:

Porta Communications's annulized ROA % for the quarter that ended in Dec. 2018 is

ROA %(Q: Dec. 2018 )
=Net Income/Total Assets
=-4.802/22.674
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-4.802 / 34.656)*(34.656 / 22.674)
=Net Margin %*Asset Turnover
=-13.86 %*1.5284
=-21.18 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2018) net income data. The Revenue data used here is two times the semi-annual (Dec. 2018) 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.


Porta Communications Asset Turnover Related Terms


Porta Communications Asset Turnover Historical Data

* Premium members only.

The historical data trend for Porta 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.

Porta Communications Asset Turnover Chart

Porta Communications Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.78 1.00 1.24 1.48 1.53

Porta Communications Semi-Annual Data
Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
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 0.66 0.67 0.74 0.72 0.76

LSE:PTCM vs NWCN, ADMG: Asset Turnover Comparison

For the Advertising Agencies subindustry, Porta 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.


Porta Communications Asset Turnover vs Media - Diversified Industry

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

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



Porta Communications Asset Turnover Calculation

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

Porta Communications's Asset Turnover for the fiscal year that ended in Dec. 2018 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2018 )/( (Total Assets (A: Dec. 2017 )+Total Assets (A: Dec. 2018 ))/ count )
=35.853/( (26.397+20.567)/ 2 )
=35.853/23.482
=1.53

Porta Communications's Asset Turnover for the quarter that ended in Dec. 2018 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2018 )/( (Total Assets (Q: Jun. 2018 )+Total Assets (Q: Dec. 2018 ))/ count )
=17.328/( (24.781+20.567)/ 2 )
=17.328/22.674
=0.76

* 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.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.76 mean?
Porta Communications (LSE:PTCM) has a Asset Turnover of 0.76 as of Dec. 2018. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Porta Communications and its competitors.
Is Porta Communications' Asset Turnover too high?
Porta Communications' current Asset Turnover is 0.76.
How does Porta Communications' Asset Turnover compare to NWCN and ADMG?
Porta Communications' Asset Turnover of 0.76 can be compared against companies in the Media - Diversified 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 Media - Diversified company?
A good Asset Turnover depends on the Media - Diversified 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 Porta Communications and its competitors. Porta Communications's current Asset Turnover is 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Porta Communications stock overvalued right now?
Porta Communications (LSE:PTCM) has a current Asset Turnover of 0.76. The current Asset Turnover is 0.76. 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 Porta Communications (LSE:PTCM), the current Asset Turnover is 0.76 as of Dec. 2018. 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.

Porta Communications Business Description

Address 50 Basinghall Street, Sky Light City Tower, London, GBR, EC2V 5DE
Porta Communications PLC is communications, marketing, design, advertising and analytical service provider. The company engages its business through three segments: Corporate Communications, Marketing and Advertising, and Head Office. Its operating segments include Corporate Communications and Marketing and Advertising through which it offers public relations, public affairs, media buying, advertising, marketing and corporate branding services. Its Head Office segment offers group treasury, and finance and management services. The majority of the company revenues are generated through the Corporate Communications segment mainly from the Europe and Asia-Pacific region.