Sentences with phrase «asset turnover»

Asset turnover is a financial term referring to how efficiently a company uses its assets to generate sales or revenue. It shows how well a company can transform the value of its investments, like inventory or equipment, into sales. A higher asset turnover means the company is making good use of its assets to produce more sales. Full definition
Award 1 point for a higher asset turnover ratio than the previous year; 0 points if it has decreased.
Because of lower asset turnover ETFs tend to be more cost - and tax - efficient than traditional mutual funds.
Among the variables he examined: return on assets, current ratio, cash flow from operations, change in gross margin, and change in asset turnover.
Far lower asset turnover tends to be correlated with lower asset trading and brokerage expenses and costs.
In many cases, ETFs track indexes that result in minimal asset turnover and greater portfolio stability.
The purpose of a load is to cover administrative expenses and transaction costs and sometimes to discourage asset turnover.
Lower asset turnover tends to be associated with lower asset portfolio brokerage and trading expenses and fees.
Return on Assets = Net Profit Margin x Total Assets Turnover = Net Operating Profit After Taxes / Sales x Sales / Average Net Assets
Fixed Asset Turnover = Sales / Net Fixed Assets (Fixed Assets — Accumulated Depreciation) this ratio provides an idea of how effectively your Fixed assets are contributing to operations.
This restates ROIC as operating margin multiplied by asset turnover.
You can likely maintain higher asset turnover and higher returns on capital by getting more cash up front and moving that money more quickly into new inventory than waiting 3 - 4 years for modest upside from interest payments.
SCREENED INVESTING FUNDS TYPICALLY ARE PASSIVE INDEX TRACKING INVESTOR FUNDS: Due to the fact that these much lower cost no load investment funds tend to be index investment funds, they also tend to have far lower investment asset turnover when compared to the far higher securities portfolio turnover churning of non-index, actively managed funds.
... This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders» equity) ROE = annual net profit ÷ shareholders» equity NasdaqGS: MRVL Last Perf Nov 28th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient MRVL is with its cost management.
Asset turnover basically measures how efficient a company is at using the resources it has to generate revenue.
A company with a high return on net assets ratio, profit margin, or asset turnover relative to its industry median tends to have greater mean reversion in these measures.
Lesser asset turnover is correlated with lesser asset brokerage and trading fees and costs.
An improvement in asset turnover signifies greater productivity from the asset base.
Seeks to capture large cap stock mispricing opportunities due to market inefficiency, by continuously computing relative valuation of large cap stocks according to growth factors such as earnings growth rate, sales growth rate, p / e / g ratios, asset turnover rate, operating margin, debt / equity ratio, free cash flow, relative price strength, etc..
Philip Morris has a good asset turnover ratio but it can do better.
The fact that ETFs are traded on the secondary market just like stocks and bonds also helps reduce asset turnover by making it less likely the funds will need to sell assets to cover a shareholder redemption.
A good return on the assets that you own is essential for making good investments, so the total asset turnover is something...
SELECTED INVESTMENT FUNDS USUALLY ARE PASSIVELY MANAGED INDEX FUNDS: Because lower cost no sales load investment company funds tend to be more passively managed index tracking funds, these funds also most often have far lower securities portfolio turnover churning than the higher asset turnover that characterizes non-index based, active investing funds.
An increase in asset turnover (sales divided by assets at the beginning of the year) from one year to another would indicate greater efficiency.
One of the primary reasons ETFs are passively managed is because this management style requires very little trading activity, resulting in low asset turnover.
The asset turnover necessitated an upgrade in expertise.
Consider expense ratios, sales loads, asset turnover, transaction costs and management style of individual fund investments, among other services.
Total Asset Turnover When you divide your total assets by your net sales, you are left with the total asset turnover of your investments.
Asset Turnover — A financial ratio that's used to help measure a company's performance.
In this example, your asset turnover is exactly the same (you turn over your assets once per year in this case), but your profit margins are different.
The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its assets.
Compare this year's asset turnover (total sales divided by total assets at the beginning of the year) to last year's asset turnover ratio.
• Changes in sales, profit margins, and asset turnover are strongly mean reverting.
Higher the asset turnover ratio, better it's for the company as it means that the company is generating more revenue per rupee spent.
A Score for each value stock is then assigned based on six historical variables: market cap, stock liquidity (i.e., annual trading volume / shares), asset turnover (i.e., assets / revenues), total debt to equity, cash to assets and year - over-year EBIT annual growth rate, one variable at a time.
His variables capture profitability (positive earnings, positive cash flows from operations, increasing return on assets and negative accruals), operating efficiency (increasing gross margins and asset turnover) and liquidity (decreasing debt, increasing current ratio, and no equity issuance).
Look for a company with high activity ratios such as fixed asset turnover ratio and total assets turnover ratio.
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