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Prudential Financial (LTS:0KRX) Asset Turnover : 0.03 (As of Sep. 2024)


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What is Prudential Financial Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Prudential Financial's Revenue for the three months ended in Sep. 2024 was $19,533 Mil. Prudential Financial's Total Assets for the quarter that ended in Sep. 2024 was $737,745 Mil. Therefore, Prudential Financial's Asset Turnover for the quarter that ended in Sep. 2024 was 0.03.

Asset Turnover is linked to ROE % through Du Pont Formula. Prudential Financial's annualized ROE % for the quarter that ended in Sep. 2024 was 6.13%. It is also linked to ROA % through Du Pont Formula. Prudential Financial's annualized ROA % for the quarter that ended in Sep. 2024 was 0.24%.


Prudential Financial Asset Turnover Historical Data

The historical data trend for Prudential Financial'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.

Prudential Financial Asset Turnover Chart

Prudential Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.08 0.06 0.08 0.07 0.08

Prudential Financial Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.01 0.02 0.03 0.02 0.03

Competitive Comparison of Prudential Financial's Asset Turnover

For the Insurance - Life subindustry, Prudential Financial'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.


Prudential Financial's Asset Turnover Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Prudential Financial's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Prudential Financial's Asset Turnover falls into.



Prudential Financial Asset Turnover Calculation

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

Prudential Financial's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=54265/( (689029+721123)/ 2 )
=54265/705076
=0.08

Prudential Financial's Asset Turnover for the quarter that ended in Sep. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=19533/( (715196+760294)/ 2 )
=19533/737745
=0.03

* 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.


Prudential Financial  (LTS:0KRX) Asset Turnover Explanation

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

Prudential Financial's annulized ROE % for the quarter that ended in Sep. 2024 is

ROE %**(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=1792/29214.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1792 / 78132)*(78132 / 737745)*(737745/ 29214.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.29 %*0.1059*25.2527
=ROA %*Equity Multiplier
=0.24 %*25.2527
=6.13 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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:

Prudential Financial's annulized ROA % for the quarter that ended in Sep. 2024 is

ROA %(Q: Sep. 2024 )
=Net Income/Total Assets
=1792/737745
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1792 / 78132)*(78132 / 737745)
=Net Margin %*Asset Turnover
=2.29 %*0.1059
=0.24 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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.


Prudential Financial Asset Turnover Related Terms

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Prudential Financial Business Description

Address
751 Broad Street, Newark, NJ, USA, 07102
Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 10% of its earnings and has around $1.3 trillion in assets under management. The US businesses are responsible for about 50% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

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