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RXT (Rackspace Technology) Asset Turnover : 0.22 (As of Dec. 2024)


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What is Rackspace Technology Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Rackspace Technology's Revenue for the three months ended in Dec. 2024 was $686 Mil. Rackspace Technology's Total Assets for the quarter that ended in Dec. 2024 was $3,098 Mil. Therefore, Rackspace Technology's Asset Turnover for the quarter that ended in Dec. 2024 was 0.22.

Asset Turnover is linked to ROE % through Du Pont Formula. Rackspace Technology's annualized ROE % for the quarter that ended in Dec. 2024 was 24.67%. It is also linked to ROA % through Du Pont Formula. Rackspace Technology's annualized ROA % for the quarter that ended in Dec. 2024 was -7.80%.


Rackspace Technology Asset Turnover Historical Data

The historical data trend for Rackspace Technology'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.

Rackspace Technology Asset Turnover Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Asset Turnover
Get a 7-Day Free Trial 0.43 0.47 0.53 0.62 0.77

Rackspace Technology Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 0.17 0.18 0.20 0.21 0.22

Competitive Comparison of Rackspace Technology's Asset Turnover

For the Software - Infrastructure subindustry, Rackspace Technology'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.


Rackspace Technology's Asset Turnover Distribution in the Software Industry

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

* The bar in red indicates where Rackspace Technology's Asset Turnover falls into.



Rackspace Technology Asset Turnover Calculation

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

Rackspace Technology's Asset Turnover for the fiscal year that ended in Dec. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2024 )/( (Total Assets (A: Dec. 2023 )+Total Assets (A: Dec. 2024 ))/ count )
=2737.1/( (4096.2+3051)/ 2 )
=2737.1/3573.6
=0.77

Rackspace Technology's Asset Turnover for the quarter that ended in Dec. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2024 )/( (Total Assets (Q: Sep. 2024 )+Total Assets (Q: Dec. 2024 ))/ count )
=685.6/( (3145.8+3051)/ 2 )
=685.6/3098.4
=0.22

* 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.


Rackspace Technology  (NAS:RXT) Asset Turnover Explanation

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

Rackspace Technology's annulized ROE % for the quarter that ended in Dec. 2024 is

ROE %**(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=-241.6/-979.15
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-241.6 / 2742.4)*(2742.4 / 3098.4)*(3098.4/ -979.15)
=Net Margin %*Asset Turnover*Equity Multiplier
=-8.81 %*0.8851*-3.1644
=ROA %*Equity Multiplier
=-7.80 %*-3.1644
=24.67 %

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

Rackspace Technology's annulized ROA % for the quarter that ended in Dec. 2024 is

ROA %(Q: Dec. 2024 )
=Net Income/Total Assets
=-241.6/3098.4
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-241.6 / 2742.4)*(2742.4 / 3098.4)
=Net Margin %*Asset Turnover
=-8.81 %*0.8851
=-7.80 %

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


Rackspace Technology Asset Turnover Related Terms

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


Rackspace Technology Business Description

Traded in Other Exchanges
N/A
Address
19122 US Highway 281 North, Suite 128, San Antonio, TX, USA, 78258
Rackspace Technology Inc is an end-to-end, hybrid, multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in segments namely, Private Cloud, and Public Cloud. It generates revenue through the sale of consumption-based contracts for its service offerings and from the sale of professional services related to designing and building custom solutions.
Executives
Mark A. Marino other: Vice President & CAO 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony C. Roberts director 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Brian Lillie officer: EVP, President Private Cloud 1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Kellie Teal-guess officer: Chief Human Resources Officer 1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Amar Maletira officer: President & CFO C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Srini Koushik officer: Chief Technology Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha officer: EVP, President, Public Cloud C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Casey L. Shilling officer: SVP - Chief Marketing Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc. director 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony Scott director 25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Betsy S Atkins director
Naushaza Molu officer: EVP, Chief Financial Officer 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir officer: SVP - Chief Operations Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos director C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035