XCOMQ (Xtera Communications) Asset Turnover: 0.10 (As of Jun. 2016)

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What is Xtera Communications Asset Turnover?

Xtera Communications XCOMQ -99.00% Asset Turnover is 0.10 as of Jun. 2016.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Xtera Communications's Revenue for the three months ended in Jun. 2016 was $5.35 Mil. Xtera Communications's Total Assets for the quarter that ended in Jun. 2016 was $53.27 Mil. Therefore, Xtera Communications's Asset Turnover for the quarter that ended in Jun. 2016 was 0.10.

Asset Turnover is linked to ROE % through Du Pont Formula. Xtera Communications's annualized ROE % for the quarter that ended in Jun. 2016 was -7,206.40%. It is also linked to ROA % through Du Pont Formula. Xtera Communications's annualized ROA % for the quarter that ended in Jun. 2016 was -177.49%.


Xtera Communications  (OTCPK:XCOMQ) Asset Turnover Explanation

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

Xtera Communications's annulized ROE % for the quarter that ended in Jun. 2016 is

ROE %**(Q: Jun. 2016 )
=Net Income/Total Stockholders Equity
=-94.548/1.312
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-94.548 / 21.388)*(21.388 / 53.2685)*(53.2685/ 1.312)
=Net Margin %*Asset Turnover*Equity Multiplier
=-442.06 %*0.4015*40.601
=ROA %*Equity Multiplier
=-177.49 %*40.601
=-7,206.40 %

Note: The Net Income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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:

Xtera Communications's annulized ROA % for the quarter that ended in Jun. 2016 is

ROA %(Q: Jun. 2016 )
=Net Income/Total Assets
=-94.548/53.2685
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-94.548 / 21.388)*(21.388 / 53.2685)
=Net Margin %*Asset Turnover
=-442.06 %*0.4015
=-177.49 %

Note: The Net Income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.


Xtera Communications Asset Turnover Related Terms


Xtera Communications Asset Turnover Historical Data

* Premium members only.

The historical data trend for Xtera 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.

Xtera Communications Asset Turnover Chart

Xtera Communications Annual Data
Trend Sep13 Sep14 Sep15
Asset Turnover
0.58 0.56 1.58

Xtera Communications Quarterly Data
Sep13 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Asset Turnover Get a 7-Day Free Trial Premium Member Only 0.47 0.41 0.27 0.31 0.10

XCOMQ vs TAIT, AEY: Asset Turnover Comparison

For the Communication Equipment subindustry, Xtera Communications'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.


Xtera Communications Asset Turnover vs Hardware Industry

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

* The bar in red indicates where Xtera Communications's Asset Turnover falls into.



Xtera Communications Asset Turnover Calculation

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

Xtera Communications's Asset Turnover for the fiscal year that ended in Sep. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Sep. 2015 )/( (Total Assets (A: Sep. 2014 )+Total Assets (A: Sep. 2015 ))/ count )
=58.671/( (34.91+39.272)/ 2 )
=58.671/37.091
=1.58

Xtera Communications's Asset Turnover for the quarter that ended in Jun. 2016 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jun. 2016 )/( (Total Assets (Q: Mar. 2016 )+Total Assets (Q: Jun. 2016 ))/ count )
=5.347/( (57.074+49.463)/ 2 )
=5.347/53.2685
=0.10

* 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.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.10 mean?
Xtera Communications (XCOMQ) has a Asset Turnover of 0.10 as of Jun. 2016. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Xtera Communications and its competitors.
Is Xtera Communications' Asset Turnover too high?
Xtera Communications' current Asset Turnover is 0.10.
How does Xtera Communications' Asset Turnover compare to TAIT and AEY?
Xtera Communications' Asset Turnover of 0.10 can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Asset Turnover for a Hardware company?
A good Asset Turnover depends on the Hardware industry context. However, Asset Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Asset Turnover mean?
A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Xtera Communications and its competitors. Xtera Communications's current Asset Turnover is 0.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtera Communications stock overvalued right now?
Xtera Communications (XCOMQ) has a current Asset Turnover of 0.10. The current Asset Turnover is 0.10. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Asset Turnover calculated?
Asset Turnover is calculated from a company's financial statements. For Xtera Communications (XCOMQ), the current Asset Turnover is 0.10 as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Xtera Communications Business Description

Address 500 West Bethany Drive, Suite 100, Allen, TX, USA, 75013
Xtera Communications Inc is a provider of optical transport solutions. It sells its optical transport solutions to telecommunications service providers, content service providers, enterprises and government entities across the world to support their deployments of long-haul terrestrial and submarine optical cable networks. Its optical networking solutions are designed to offer reach and capacity for intermediate sites between end-points of long-haul networks. Its primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a spectrum of products within the optical networking industry. The company offers hardware, software and turnkey solutions.