El Paso Electric Co (El Paso Electric Co) ROC (Joel Greenblatt) % : -3.06% (As of Mar. 2020)

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What is El Paso Electric Co ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. El Paso Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2020 was -3.06%.

The historical rank and industry rank for El Paso Electric Co's ROC (Joel Greenblatt) % or its related term are showing as below:

EE's ROC (Joel Greenblatt) % is not ranked ^*
in the Utilities - Regulated industry.
Industry Median: 11.16
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

El Paso Electric Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.

El Paso Electric Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for El Paso Electric Co's ROC (Joel Greenblatt) % 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.

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El Paso Electric Co ROC (Joel Greenblatt) % Chart

El Paso Electric Co Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC (Joel Greenblatt) %

Get a 7-Day Free Trial

6.63

8.30

8.05

6.47

7.71

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
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															3.81	6.93	15.38	4.48	-3.06

Competitive Comparison of El Paso Electric Co's ROC (Joel Greenblatt) %

For the Utilities - Regulated Electric subindustry, El Paso Electric Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

El Paso Electric Co's ROC (Joel Greenblatt) % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, El Paso Electric Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where El Paso Electric Co's ROC (Joel Greenblatt) % falls into.

El Paso Electric Co ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %

EBIT

Average of (Net fixed Assets

Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

	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.

So ROC (Joel Greenblatt) % of El Paso Electric Co for the quarter that ended in Mar. 2020 can be restated 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 %

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

El Paso Electric Co (NYSE:EE) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

El Paso Electric Co ROC (Joel Greenblatt) % Related Terms

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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 » ROC (Joel Greenblatt) %

Comparable Companies

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