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Lafarge (XPAR:LGNV) Asset Turnover : 0.10 (As of Jun. 2015)


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What is Lafarge Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Lafarge's Revenue for the three months ended in Jun. 2015 was €3,540 Mil. Lafarge's Total Assets for the quarter that ended in Jun. 2015 was €35,991 Mil. Therefore, Lafarge's Asset Turnover for the quarter that ended in Jun. 2015 was 0.10.

Asset Turnover is linked to ROE % through Du Pont Formula. Lafarge's annualized ROE % for the quarter that ended in Jun. 2015 was -9.62%. It is also linked to ROA % through Du Pont Formula. Lafarge's annualized ROA % for the quarter that ended in Jun. 2015 was -4.23%.


Lafarge Asset Turnover Historical Data

The historical data trend for Lafarge'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.

Lafarge Asset Turnover Chart

Lafarge Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.36 0.37 0.39 0.35 0.37

Lafarge Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 0.10 0.10 0.09 0.08 0.10

Competitive Comparison of Lafarge's Asset Turnover

For the Building Materials subindustry, Lafarge'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.


Lafarge's Asset Turnover Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Lafarge's Asset Turnover distribution charts can be found below:

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



Lafarge Asset Turnover Calculation

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

Lafarge's Asset Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=12843/( (35233+34804)/ 2 )
=12843/35018.5
=0.37

Lafarge's Asset Turnover for the quarter that ended in Jun. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jun. 2015 )/( (Total Assets (Q: Mar. 2015 )+Total Assets (Q: Jun. 2015 ))/ count )
=3540/( (36652+35330)/ 2 )
=3540/35991
=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.


Lafarge  (XPAR:LGNV) Asset Turnover Explanation

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

Lafarge's annulized ROE % for the quarter that ended in Jun. 2015 is

ROE %**(Q: Jun. 2015 )
=Net Income/Total Stockholders Equity
=-1524/15845.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1524 / 14160)*(14160 / 35991)*(35991/ 15845.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-10.76 %*0.3934*2.2714
=ROA %*Equity Multiplier
=-4.23 %*2.2714
=-9.62 %

Note: The Net Income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 2015) 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:

Lafarge's annulized ROA % for the quarter that ended in Jun. 2015 is

ROA %(Q: Jun. 2015 )
=Net Income/Total Assets
=-1524/35991
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1524 / 14160)*(14160 / 35991)
=Net Margin %*Asset Turnover
=-10.76 %*0.3934
=-4.23 %

Note: The Net Income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 2015) 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.


Lafarge Asset Turnover Related Terms

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


Lafarge (XPAR:LGNV) Business Description

Traded in Other Exchanges
N/A
Address
Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landfills, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

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