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Zoom Video Communications Asset Turnover

: 0.16 (As of Oct. 2021)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Zoom Video Communications's Revenue for the three months ended in Oct. 2021 was $1,051 Mil. Zoom Video Communications's Total Assets for the quarter that ended in Oct. 2021 was $6,744 Mil. Therefore, Zoom Video Communications's Asset Turnover for the quarter that ended in Oct. 2021 was 0.16.

Asset Turnover is linked to ROE % through Du Pont Formula. Zoom Video Communications's annualized ROE % for the quarter that ended in Oct. 2021 was 27.87%. It is also linked to ROA % through Du Pont Formula. Zoom Video Communications's annualized ROA % for the quarter that ended in Oct. 2021 was 20.19%.


Zoom Video Communications Asset Turnover Historical Data

The historical data trend for Zoom Video 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.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21
Asset Turnover
- 0.70 1.16 0.76 0.81

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
Asset Turnover 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 0.27 0.21 0.17 0.17 0.16

Zoom Video Communications Asset Turnover Calculation

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

Zoom Video Communications's Asset Turnover for the fiscal year that ended in Jan. 2021 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jan. 2021 )/( (Total Assets (A: Jan. 2020 )+Total Assets (A: Jan. 2021 ))/ count )
=2651.368/( (1289.845+5297.993)/ 2 )
=2651.368/3293.919
=0.80

Zoom Video Communications's Asset Turnover for the quarter that ended in Oct. 2021 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Oct. 2021 )/( (Total Assets (Q: Jul. 2021 )+Total Assets (Q: Oct. 2021 ))/ count )
=1050.756/( (6508.593+6978.971)/ 2 )
=1050.756/6743.782
=0.16

* 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.


Zoom Video Communications  (NAS:ZM) Asset Turnover Explanation

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

Zoom Video Communications's annulized ROE % for the quarter that ended in Oct. 2021 is

ROE %**(Q: Oct. 2021 )
=Net Income/Total Stockholders Equity
=1361.532/4885.7165
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1361.532 / 4203.024)*(4203.024 / 6743.782)*(6743.782/ 4885.7165)
=Net Margin %*Asset Turnover*Equity Multiplier
=32.39 %*0.6232*1.3803
=ROA %*Equity Multiplier
=20.19 %*1.3803
=27.87 %

Note: The Net Income data used here is four times the quarterly (Oct. 2021) net income data. The Revenue data used here is four times the quarterly (Oct. 2021) 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:

Zoom Video Communications's annulized ROA % for the quarter that ended in Oct. 2021 is

ROA %(Q: Oct. 2021 )
=Net Income/Total Assets
=1361.532/6743.782
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1361.532 / 4203.024)*(4203.024 / 6743.782)
=Net Margin %*Asset Turnover
=32.39 %*0.6232
=20.19 %

Note: The Net Income data used here is four times the quarterly (Oct. 2021) net income data. The Revenue data used here is four times the quarterly (Oct. 2021) 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.


Zoom Video Communications Asset Turnover Related Terms

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Zoom Video Communications Business Description

Zoom Video Communications logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Bawa Aparna officer: Chief Operating Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Pelosi Janine officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Hammonds Kimberly director 100 EAST DAVIE STREET RALEIGH NC 27601
Crehan Shane officer: Chief Accounting Officer C/O EVENTBRITE, INC. 155 5TH STREET, 7TH FLOOR SAN FRANCISCO CA 94103
Yuan Eric S. director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Mcmaster Herbert Raymond director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Steckelberg Kelly officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Gassner Peter P director C/O VEEVA SYSTEMS INC. 4280 HACIENDA DRIVE PLEASANTON CA 94588
Chadwick Jonathan director 3401 HILLVIEW AVENUE PALO ALTO CA 94304
Azus Ryan officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Swanson Bart director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Benhorin Roy officer: Chief Accounting Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Sankarlingam Velchamy officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Subotovsky Santiago director C/O EMERGENCE CAPITAL PARTNERS 160 BOVENT ROAD SUITE 300 SAN MATEO CA 94402
Emergence Equity Partners Iii, L.p. 10 percent owner 160 BOVET ROAD, SUITE 300 SAN MATEO CA 94402

Zoom Video Communications Headlines

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