Stock Analysis on Net

EMC Corp. (NYSE:EMC)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 8, 2016.

Analysis of Geographic Areas

Microsoft Excel

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Area Asset Turnover

EMC Corp., asset turnover by geographic area

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
United States
International

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).


United States Asset Turnover
The asset turnover ratio in the United States exhibits slight fluctuations over the five-year period. Starting at 2.91 in 2011, the ratio remains relatively stable, experiencing a minor decline to 2.88 in 2012 and further to 2.76 in 2013. It then rises again to 2.93 in 2014, reverting to the initial level, before settling slightly lower at 2.91 in 2015. Overall, the ratio maintains a narrow range, indicating consistent efficiency in asset utilization within the United States market.
International Asset Turnover
The international asset turnover ratio shows a clear downward trend from 2011 to 2015. Beginning at a high level of 15.34 in 2011, the ratio decreases year over year, falling to 14.62 in 2012, 12.53 in 2013, 11.37 in 2014, and finally reaching 10.77 in 2015. This steady decline suggests a reduction in the efficiency with which assets are utilized in international markets during this period.
Comparative Analysis
Comparing the two geographic areas, the international asset turnover is significantly higher than that of the United States throughout the observed timeframe. Despite this, the international ratio is in a marked decline, whereas the United States ratio remains relatively stable. The decreasing trend in the international sector contrasts with the stability seen domestically, which could indicate differing operational dynamics or market conditions influencing asset utilization across regions.

Area Asset Turnover: United States

EMC Corp.; United States; area asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenues
Long-lived assets
Area Activity Ratio
Area asset turnover1

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).

1 2015 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= ÷ =


Revenue Trends
The revenues consistently increased over the five-year period, starting at 10,550 million US dollars in 2011 and reaching 13,361 million US dollars by the end of 2015. This steady growth indicates a positive demand and expansion in the geographic area.
Long-lived Assets
The value of long-lived assets followed an overall upward trajectory from 3,623 million US dollars in 2011 to 4,584 million US dollars in 2015. There was a notable increase each year except for a slight decrease observed in 2014 when the assets dropped slightly from 4,433 million to 4,380 million US dollars before rising again in 2015.
Area Asset Turnover
The area asset turnover ratio experienced minor fluctuations throughout the period. Beginning at 2.91 in 2011, it slightly decreased to 2.88 in 2012 and further to 2.76 in 2013, indicating a reduction in asset utilization efficiency. This was followed by a recovery to 2.93 in 2014 and a slight decline to 2.91 in 2015, suggesting the efficiency in using assets to generate revenues stabilized near the initial level by the end of the period.
Overall Insights
The increasing revenues alongside growing long-lived assets suggest ongoing investments and operational expansion in the area. The relatively stable asset turnover ratio, despite small variances, reflects consistent efficiency in using assets to produce revenues, without significant deterioration or improvement. The slight dip and recovery in both assets and turnover ratio around 2013-2014 may warrant further examination to understand underlying operational adjustments or market factors during that timeframe.

Area Asset Turnover: International

EMC Corp.; International; area asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenues
Long-lived assets
Area Activity Ratio
Area asset turnover1

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).

1 2015 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= ÷ =


Revenues
Revenues in the international geographic area showed a consistent upward trend from 2011 to 2014, increasing from US$9,458 million to US$11,605 million. However, in 2015, revenues experienced a slight decline to US$11,343 million, indicating a potential plateau or minor contraction after several years of growth.
Long-lived assets
The value of long-lived assets steadily increased over the period, rising from US$617 million in 2011 to US$1,053 million in 2015. This represents a significant upward investment trend, with the most notable increase occurring between 2013 and 2014, where assets grew by approximately 16.5%.
Area asset turnover
The area asset turnover ratio demonstrated a persistent downward trend, falling from 15.34 in 2011 to 10.77 in 2015. This decline suggests a decreasing efficiency in utilizing assets to generate revenue, despite the increase in revenues early in the period. The ratio's reduction highlights that the growth in long-lived assets outpaced revenue growth, potentially indicating overinvestment or diminishing returns on asset deployment.

Revenues

EMC Corp., revenues by geographic area

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
United States
International
Total

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).


The analysis of the annual geographic area revenues over the five-year period reveals distinct trends in both the United States and International markets, as well as the consolidated total revenue.

United States Revenue
The revenue from the United States demonstrates a consistent upward trajectory throughout the period. Starting at US$10,550 million in 2011, it increased year-on-year to reach US$13,361 million by 2015. This steady growth reflects a positive performance in the domestic market, with an approximate increase of 26.6% over the five years.
International Revenue
The international revenue also shows a general growth trend from 2011 to 2014, rising from US$9,458 million to US$11,605 million. However, in 2015, there is a noticeable decline to US$11,343 million, indicating a reversal after four years of sustained growth. This decrease amounts to approximately 2.2% from the 2014 peak, suggesting potential challenges or market contractions in certain international regions during that year.
Total Revenue
Total revenue, aggregating both domestic and international figures, increases each year from US$20,008 million in 2011 to US$24,440 million in 2014, before experiencing a marginal rise to US$24,704 million in 2015. The slight slowdown in total growth between 2014 and 2015 is primarily attributable to the decline in international revenue, partially offset by the continued growth in the United States market. Overall, the total revenue grew by approximately 23.5% over the five-year span.

In summary, the domestic market exhibits robust and steady growth throughout the entire period, while the international market initially grows but faces a downturn in the final year. The total revenue growth pattern follows a similar trend, indicating strengthening domestic performance is a key driver of the company's overall revenue increase, with international sales exhibiting greater variability and risk in the most recent year.


Long-lived assets

EMC Corp., long-lived assets by geographic area

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
United States
International
Total

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).


United States Long-lived Assets
There is a consistent upward trend in the value of long-lived assets attributed to the United States from 2011 through 2015. The asset value increased from $3,623 million in 2011 to $4,584 million in 2015, reflecting steady annual growth except for a slight decline between 2013 and 2014 when the value decreased from $4,433 million to $4,380 million.
International Long-lived Assets
The international segment shows a strong growth momentum over the period examined. Starting at $617 million in 2011, the assets increased yearly, reaching $1,053 million in 2015. This indicates a significant increase in investments or acquisitions outside the United States, with the most notable growth occurring between 2013 and 2014.
Total Long-lived Assets
The total long-lived assets demonstrate a steady and continuous increase from $4,239 million in 2011 to $5,637 million in 2015. This aggregate growth reflects the combined positive trends in both domestic and international asset bases, with the most substantial relative growth occurring in the international segment.
Overall Analysis
The data indicates that while the United States continues to be the primary source of long-lived assets, its growth is moderate compared to the international segment. The international assets exhibit a higher growth rate, contributing increasingly to the total asset base. The company's long-lived asset portfolio is diversifying geographically, with overall asset accumulation progressing steadily throughout the five-year period.