Using Asset Turnover and Profit Margin to Forecast Changes in Profitability

By P. Fairfield, Teri Lombardi Yohn. 2001

398 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/676a186104dacb80de90fea14f6c79fb77cbc48a

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Citations in the corpus

Firm Growth and Disclosure: An Empirical Analysis (2005, neutral): “Fairfield and Yohn (2001) also note that asset turnover measures a firm’s ability to generate revenues from its assets.”
Accounting Conservatism, the Quality of Earnings, and Stock Returns (2002, result): “These results indicate that changes in turnover are related to earnings quality, as in Fairfield and Yohn (2001) but for different reasons, for that paper views changes in net operating assets (rather than Q) as a diagnostic of earnings quality.”
The Use of Dupont Analysis by Market Participants (2008, neutral): “This choice was made to 1) facilitate comparison with other studies (Fairfield and Yohn, 2001), 2) remove firm-year observations where earnings do not map clearly into equity valuation (Burgstahler and Dichev, 1997; Collins et al., 1999), and 3) allow for a clear ranking of performance.”
Customer-base concentration, profitability and distress across the corporate life cycle (2013, positive): “2 naturally follows earlier studies on firm profitability (Fairfield and Yohn (2001), Soliman (2008)), and focuses on firms with positive operating performance.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “…whether earnings are more sustainable for firms that follow a differentiation strategy associated with higher margins and lower turnover versus a cost leadership strategy associated with lower margins and higher turnover (e.g., Nissim and Penman, 2001; Fairfield and Yohn, 2001; Soliman, 2008).”
A Measure of Competition Based on 10-K Filings (2012, neutral): “Nissim and Penman (2001) find that return on equity mean reverts to an economy-wide average (about 12%), and Fairfield et al. (2009) show that the return on equity mean reverts to an economy-wide rate and not an industry rate.”
Cash Flow Patterns as a Proxy for Firm Life Cycle (2011, methodology): “I adapt Fairfield and Yohn’s (2001) model of future profitability to test the incremental effect of life cycle stage in explaining one-year-ahead change in RNOA.”
Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, neutral): “Inclusion of both levels and changes is also consistent with prior literature that forecasts changes in profitability (e.g., Fama and French 2000; Fairfield and Yohn 2001; Penman and Zhang 2002).”
Factors affecting profitability in Malaysia (2018, background): “Fairfield and Yohn (2001) studied the use of OPM and assets turnover ratios to forecast future profitability.”
CIO Reporting Structure, Strategic Positioning, and Firm Performance (2011, methodology): “Since cost leaders utilize their assets efficiently, they must maintain lean operations (e.g., Fairfield and Yohn 2001).”
The Quality of Financial Statements: Perspectives from the Recent Stock Market Bubble (2002, background): “(1996), Fairfield and Yohn (2001), Fairfield, Whisenant and Yohn (2001), Chan, Chan,”