Total Asset Turnover
since 2005
Calculation
EMC Corp., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.53 | = | 24,704) | ÷ | 46,612) |
| Dec 31, 2014 | 0.53 | = | 24,440) | ÷ | 45,885) |
| Dec 31, 2013 | 0.51 | = | 23,222) | ÷ | 45,849) |
| Dec 31, 2012 | 0.57 | = | 21,714) | ÷ | 38,069) |
| Dec 31, 2011 | 0.58 | = | 20,008) | ÷ | 34,268) |
| Dec 31, 2010 | 0.55 | = | 17,015) | ÷ | 30,833) |
| Dec 31, 2009 | 0.52 | = | 14,026) | ÷ | 26,812) |
| Dec 31, 2008 | 0.62 | = | 14,876) | ÷ | 23,875) |
| Dec 31, 2007 | 0.59 | = | 13,230) | ÷ | 22,285) |
| Dec 31, 2006 | 0.60 | = | 11,155) | ÷ | 18,566) |
| Dec 31, 2005 | 0.58 | = | 9,664) | ÷ | 16,790) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
Between 2005 and 2015, a consistent expansion in both revenues and total assets was observed. While revenues increased from 9,664 million to 24,704 million US$, total assets grew more aggressively, rising from 16,790 million to 46,612 million US$. This disparity in growth rates resulted in a general downward pressure on the total asset turnover ratio over the eleven-year period.
- Revenue and Asset Growth Dynamics
- Revenue exhibited a steady upward trend until 2014, with a marginal increase in 2015. Conversely, the asset base expanded significantly, particularly between 2012 and 2013, where assets jumped from 38,069 million to 45,849 million US$. Because the growth in total assets outpaced the growth in revenues, the efficiency of asset utilization declined over the long term.
- Total Asset Turnover Volatility
- The asset turnover ratio experienced notable fluctuations, reaching a peak of 0.62 in 2008. This peak was followed by a sharp decline to 0.52 in 2009, coinciding with a dip in annual revenues. While the ratio recovered to 0.58 by 2011, it fell to its lowest point of 0.51 in 2013, driven by the substantial increase in the asset base during that fiscal year.
- Long-term Efficiency Trend
- The trajectory of the total asset turnover ratio indicates a diminishing return on assets. The ratio closed the period at 0.53 in 2015, representing a decrease from the 0.58 recorded in 2005. This suggests that for every dollar invested in assets, the company generated less revenue at the end of the period than it did at the beginning, highlighting a reduction in operational asset efficiency.
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Comparison to Competitors
EMC Corp., total asset turnover, long-term trends, comparison to competitors
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 0.53 | 1.28 | 0.49 | 0.63 | 0.64 | 0.54 | 0.58 | 0.56 | 0.63 | 0.67 | 0.65 | 0.50 | 0.80 |
| Dec 31, 2014 | 0.53 | 1.46 | 0.42 | 0.69 | 0.41 | 0.61 | 0.53 | 0.58 | 0.62 | 0.73 | 0.57 | 0.55 | 0.74 |
| Dec 31, 2013 | 0.51 | 1.22 | 0.41 | 0.62 | 0.74 | 0.57 | 0.54 | 0.50 | 0.60 | 0.47 | 0.67 | 0.55 | 0.64 |
| Dec 31, 2012 | 0.57 | 1.36 | 0.48 | 0.72 | 0.83 | 0.63 | 0.62 | 0.33 | 0.59 | 0.57 | 0.72 | 0.44 | 0.64 |
| Dec 31, 2011 | 0.58 | 1.33 | 0.57 | 0.76 | 0.96 | 0.76 | 0.68 | 0.80 | 0.57 | 0.60 | 0.79 | 0.41 | 0.67 |
| Dec 31, 2010 | 0.55 | 1.31 | 0.64 | 0.87 | 0.97 | 0.69 | 0.47 | 0.86 | 0.54 | 0.58 | 0.93 | 0.36 | 1.04 |
| Dec 31, 2009 | 0.52 | 0.60 | 0.59 | 0.52 | 0.75 | 0.66 | 0.42 | 0.57 | 0.67 | 0.42 | 1.02 | 0.38 | 0.86 |
| Dec 31, 2008 | 0.62 | 0.76 | 0.84 | 0.74 | — | 0.74 | 0.52 | 0.88 | 0.64 | 0.43 | 1.09 | 0.45 | 1.05 |
| Dec 31, 2007 | 0.59 | 0.52 | 0.86 | 0.91 | — | 0.69 | 0.59 | 1.22 | 0.49 | 0.38 | 1.15 | 0.48 | 1.09 |
| Dec 31, 2006 | 0.60 | 0.43 | 0.65 | 0.97 | — | 0.73 | 0.45 | 0.71 | 0.48 | 0.43 | 1.24 | 0.49 | 1.02 |
| Dec 31, 2005 | 0.58 | 0.80 | 0.52 | 0.62 | — | 0.80 | 0.52 | 1.04 | 0.44 | 0.61 | 1.23 | 0.45 | 0.89 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
EMC Corp., total asset turnover, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| EMC Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2015 | 0.53 | 0.58 |
| Dec 31, 2014 | 0.53 | 0.62 |
| Dec 31, 2013 | 0.51 | 0.58 |
| Dec 31, 2012 | 0.57 | 0.60 |
| Dec 31, 2011 | 0.58 | 0.67 |
| Dec 31, 2010 | 0.55 | 0.68 |
| Dec 31, 2009 | 0.52 | 0.59 |
| Dec 31, 2008 | 0.62 | 0.69 |
| Dec 31, 2007 | 0.59 | 0.68 |
| Dec 31, 2006 | 0.60 | 0.68 |
| Dec 31, 2005 | 0.58 | 0.73 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
EMC Corp., total asset turnover, long-term trends, comparison to industry (information technology)
| EMC Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2015 | 0.53 | 0.63 |
| Dec 31, 2014 | 0.53 | 0.64 |
| Dec 31, 2013 | 0.51 | 0.66 |
| Dec 31, 2012 | 0.57 | 0.70 |
| Dec 31, 2011 | 0.58 | 0.73 |
| Dec 31, 2010 | 0.55 | 0.72 |
| Dec 31, 2009 | 0.52 | 0.69 |
| Dec 31, 2008 | 0.62 | 0.79 |
| Dec 31, 2007 | 0.59 | 0.76 |
| Dec 31, 2006 | 0.60 | 0.75 |
| Dec 31, 2005 | 0.58 | 0.76 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).