TE Connectivity (NYSE:TEL) Asset Turnover

: 0.19 (As of Sep. 2023)

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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. TE Connectivity's Revenue for the three months ended in Sep. 2023 was $4,035 Mil. TE Connectivity's Total Assets for the quarter that ended in Sep. 2023 was $21,707 Mil. Therefore, TE Connectivity's Asset Turnover for the quarter that ended in Sep. 2023 was 0.19.

Asset Turnover is linked to ROE % through Du Pont Formula. TE Connectivity's annualized ROE % for the quarter that ended in Sep. 2023 was 19.28%. It is also linked to ROA % through Du Pont Formula. TE Connectivity's annualized ROA % for the quarter that ended in Sep. 2023 was 10.17%.

TE Connectivity Asset Turnover Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Asset Turnover

0.67

0.63

0.73

0.77

0.76

TE Connectivity Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Asset Turnover																0.21	0.18	0.19	0.19	0.19

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

TE Connectivity Asset Turnover Distribution

For the Hardware industry and Technology sector, TE Connectivity's Asset Turnover distribution charts can be found below:

* The bar in red indicates where TE Connectivity's Asset Turnover falls into.

TE Connectivity Asset Turnover Calculation

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

TE Connectivity's Asset Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Sep. 2023 )	/	( (Total Assets (A: Sep. 2022 )	+	Total Assets (A: Sep. 2023 ))	/ count )
=	16034	/	( (20782	+	21712)	/ 2 )
=	16034	/	21247
=	0.75

TE Connectivity's Asset Turnover for the quarter that ended in Sep. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Sep. 2023 )	/	( (Total Assets (Q: Jun. 2023 )	+	Total Assets (Q: Sep. 2023 ))	/ count )
=	4035	/	( (21701	+	21712)	/ 2 )
=	4035	/	21706.5
=	0.19

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.

TE Connectivity (NYSE:TEL) Asset Turnover Explanation

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

TE Connectivity's annulized ROE % for the quarter that ended in Sep. 2023 is

	ROE %^**		(Q: Sep. 2023 )
=	Net Income	/	Total Stockholders Equity
=	2208	/	11450
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(2208 / 16140)	*	(16140 / 21706.5)	*	(21706.5/ 11450)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	13.68 %	*	0.7436	*	1.8958
=	ROA %	*	Equity Multiplier
=	10.17 %	*	1.8958
=	19.28 %

Note: The Net Income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) revenue data.

^** 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:

TE Connectivity's annulized ROA % for the quarter that ended in Sep. 2023 is

	ROA %		(Q: Sep. 2023 )
=	Net Income	/	Total Assets
=	2208	/	21706.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(2208 / 16140)	*	(16140 / 21706.5)
=	Net Margin %	*	Asset Turnover
=	13.68 %	*	0.7436
=	10.17 %

Note: The Net Income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) revenue data.

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.

TE Connectivity Asset Turnover Related Terms

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TE Connectivity (NYSE:TEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

T1EL34:Brazil

Address

Muhlenstrasse 26, Schaffhausen, CHE, CH-8200

Website

https://www.te.com

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.

Executives

Malavika Sagar	officer: SVP, Chief Human Resources Off	1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu	director	1050 WESTLAKES DRIVE, BERWYN PA 19312
Syaru Shirley Lin	director
Aaron Kyle Stucki	officer: Pres. Communications Solutions	1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle	director	4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby	director	1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock	officer: President, Industrial Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko	director	C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger	officer: Pres., Communications Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar	director	ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts	officer: EVP & Chief Financial Officer	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy	officer: SVP & CHRO	1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau	director	COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson	director
Laura Wright	director	2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611