GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Talen Energy Corp (NAS:TLN) » Definitions » Asset Turnover

TLN (Talen Energy) Asset Turnover : 0.08 (As of Dec. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Talen Energy Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Talen Energy's Revenue for the three months ended in Dec. 2024 was $488 Mil. Talen Energy's Total Assets for the quarter that ended in Dec. 2024 was $6,477 Mil. Therefore, Talen Energy's Asset Turnover for the quarter that ended in Dec. 2024 was 0.08.

Asset Turnover is linked to ROE % through Du Pont Formula. Talen Energy's annualized ROE % for the quarter that ended in Dec. 2024 was 17.38%. It is also linked to ROA % through Du Pont Formula. Talen Energy's annualized ROA % for the quarter that ended in Dec. 2024 was 5.06%.


Talen Energy Asset Turnover Historical Data

The historical data trend for Talen Energy'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.

Talen Energy Asset Turnover Chart

Talen Energy Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec20 Dec21 Dec22 Dec23 Dec24
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.14 0.18 0.23 - 0.31

Talen Energy Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec20 Dec21 Dec22 Sep23 Dec23 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 0.06 - 0.06 0.08 0.08

Competitive Comparison of Talen Energy's Asset Turnover

For the Utilities - Independent Power Producers subindustry, Talen Energy'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.


Talen Energy's Asset Turnover Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Talen Energy's Asset Turnover falls into.



Talen Energy Asset Turnover Calculation

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

Talen Energy'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 )
=2073/( (7121+6106)/ 2 )
=2073/6613.5
=0.31

Talen Energy'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 )
=488/( (6848+6106)/ 2 )
=488/6477
=0.08

* 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.


Talen Energy  (NAS:TLN) Asset Turnover Explanation

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

Talen Energy's annulized ROE % for the quarter that ended in Dec. 2024 is

ROE %**(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=328/1887
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(328 / 1952)*(1952 / 6477)*(6477/ 1887)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.8 %*0.3014*3.4324
=ROA %*Equity Multiplier
=5.06 %*3.4324
=17.38 %

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:

Talen Energy's annulized ROA % for the quarter that ended in Dec. 2024 is

ROA %(Q: Dec. 2024 )
=Net Income/Total Assets
=328/6477
=(Net Income / Revenue)*(Revenue / Total Assets)
=(328 / 1952)*(1952 / 6477)
=Net Margin %*Asset Turnover
=16.8 %*0.3014
=5.06 %

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.


Talen Energy Asset Turnover Related Terms

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


Talen Energy Business Description

Traded in Other Exchanges
N/A
Address
1780 Hughes Landing, Suite 800, The Woodlands, TX, USA, 77380
Talen Energy Corp is an independent power producer and infrastructure company. The company owns and operates approximately 10.7 gigawatts of power infrastructure in the United States. The group produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, including PJM and WECC, with its generation fleet located in the Mid-Atlantic and Montana.