El Paso Electric Co (El Paso Electric Co) Operating Income : $175.5 Mil (TTM As of Mar. 2020)

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What is El Paso Electric Co Operating Income?

El Paso Electric Co's Operating Income for the three months ended in Mar. 2020 was $1.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2020 was $175.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. El Paso Electric Co's Operating Income for the three months ended in Mar. 2020 was $1.7 Mil. El Paso Electric Co's Revenue for the three months ended in Mar. 2020 was $158.6 Mil. Therefore, El Paso Electric Co's Operating Margin % for the quarter that ended in Mar. 2020 was 1.07%.

El Paso Electric Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. El Paso Electric Co's annualized ROC % for the quarter that ended in Mar. 2020 was 0.13%. El Paso Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2020 was -3.06%.

El Paso Electric Co Operating Income Historical Data

The historical data trend for El Paso Electric Co's Operating Income 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.

El Paso Electric Co Operating Income Chart

El Paso Electric Co Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Operating Income

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146.19

187.91

190.06

172.23

178.09

El Paso Electric Co Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
Operating Income	Get a 7-Day Free Trial															4.31	46.34	114.03	13.42	1.70

El Paso Electric Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $175.5 Mil.

El Paso Electric Co (NYSE:EE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

El Paso Electric Co's annualized ROC % for the quarter that ended in Mar. 2020 is calculated as:

	ROC % (Q: Mar. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2019 )	+	Invested Capital (Q: Mar. 2020 ))	/ count )
=	6.792 * ( 1 - 23.19% )	/	( (3857.693	+	3977.124)	/ 2 )
=	5.2169352	/	3917.4085
=	0.13 %

where

	Invested Capital		(Q: Dec. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3813.2	-	119.256	-	( 10.818	-	max(0, 336.395	-	172.646	+	10.818	))
=	3857.693

	Invested Capital		(Q: Mar. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3845.835	-	89.511	-	( 57.379	-	max(0, 429.744	-	208.944	+	57.379	))
=	3977.124

Note: The Operating Income data used here is four times the quarterly (Mar. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

El Paso Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2019		Q: Mar. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-99.256	/	( ( (3227.103 + max(-15.797, 0))	+	(3255.199 + max(7.5809999999999, 0)) )	/	2 )
=	-99.256	/	( ( 3227.103	+	3262.78 )	/	2 )
=	-99.256	/	3244.9415
=	-3.06 %

where Working Capital is:

	Working Capital		(Q: Dec. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(79.814	+	60.872	+	21.142)	-	(119.256	+	0	+	58.369)
=	-15.797

	Working Capital		(Q: Mar. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(66.307	+	60.429	+	24.829)	-	(89.511	+	0	+	54.473)
=	7.5809999999999

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

El Paso Electric Co's Operating Margin % for the quarter that ended in Mar. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2020 )	/	Revenue (Q: Mar. 2020 )
	=	1.698	/	158.563
	=	1.07 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

El Paso Electric Co Operating Income Related Terms

Thank you for viewing the detailed overview of El Paso Electric Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

El Paso Electric Co (El Paso Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » El Paso Electric Co (NYSE:EE) » Definitions » Operating Income

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PNM POR HE KEN IDA SPKE GNE SUME OGE PCG NEE DUK SO AEP XEL WEC ES HKSE:00002 ED XMAD:ELE

Traded in Other Exchanges

N/A

Address

100 North Stanton, Stanton Tower, El Paso, TX, USA, 79901

Website

https://www.epelectric.com

El Paso Electric Co is a Texas-based public utility company engaged in the generation, transmission, and distribution of electricity in the Southwestern U.S. The company principally serves retail customers in the El Paso, Texas and Las Cruces, New Mexico markets through its portfolio of nuclear, natural gas, coal, solar, and wind power plants. The vast majority of the total power produced by El Paso Electric is derived from its nuclear and natural gas facilities. The company generates most of its revenue from the production and sale of energy. Distribution service fees also represent a significant income stream. El Paso Electric primarily serves residential and small industrial customers, but also participates in wholesale transactions with local military installations and universities.

Executives

James W Cicconi	director	208 S. AKARD ST., DALLAS TX 75202
Charles Yamarone	director	123 W MILLS, EL PASO TX 79901
Eric B Siegel	director	123 W MILLS, EL PASO TX 79901
Stephen Wertheimer	director	123 W MILLS, EL PASO TX 79901
Paul M Barbas	director	C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432
Catherine A Allen	director	5 SAN SEBASTIAN ROAD, SANTA FE NM 87505
William Stiller	officer: SVP & Chief HRO	1601 W. LBJ FREEWAY, DALLAS TX 75234
Woody L Hunt	director	4401 NORTH MESA, EL PASO TX 79902
Shockley Thomas V Iii	director	602 CIMARRON HILLS TRAIL WEST, GEORGETOWN TX 78628
Michael K Parks	director	123 W MILLS, EL PASO TX 79901
Steven P Busser	officer: VP-TREASURER	C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Kenneth Heitz	director	123 W MILLS, EL PASO TX 79901
Edwards George W Jr	director	123 W MILLS, EL PASO TX 79901
Redd Ershel C Jr	officer: President and CEO	C/O EL PASO ELECTRIC COMPANY, 100 N. STANTON, EL PASO TX 79901
Terry D Bassham	officer: Exec VP & Chief Fin & Admin	COMMERCE BANK, PO BOX 419248, KANSAS CITY MO 64141-6248