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Pepco Holdings (Pepco Holdings) Asset Turnover : 0.07 (As of Dec. 2015)


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What is Pepco Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Pepco Holdings's Revenue for the three months ended in Dec. 2015 was $1,150 Mil. Pepco Holdings's Total Assets for the quarter that ended in Dec. 2015 was $16,442 Mil. Therefore, Pepco Holdings's Asset Turnover for the quarter that ended in Dec. 2015 was 0.07.

Asset Turnover is linked to ROE % through Du Pont Formula. Pepco Holdings's annualized ROE % for the quarter that ended in Dec. 2015 was 11.87%. It is also linked to ROA % through Du Pont Formula. Pepco Holdings's annualized ROA % for the quarter that ended in Dec. 2015 was 3.16%.


Pepco Holdings Asset Turnover Historical Data

The historical data trend for Pepco Holdings's Asset Turnover 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.

Pepco Holdings Asset Turnover Chart

Pepco Holdings Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.34 0.30 0.31 0.32 0.32

Pepco Holdings Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.07 0.09 0.07 0.08 0.07

Competitive Comparison of Pepco Holdings's Asset Turnover

For the Utilities - Regulated Electric subindustry, Pepco Holdings's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.


Pepco Holdings's Asset Turnover Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Pepco Holdings's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Pepco Holdings's Asset Turnover falls into.



Pepco Holdings Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Pepco Holdings's Asset Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2015 )/( (Total Assets (A: Dec. 2014 )+Total Assets (A: Dec. 2015 ))/ count )
=5023/( (15589+16326)/ 2 )
=5023/15957.5
=0.31

Pepco Holdings's Asset Turnover for the quarter that ended in Dec. 2015 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2015 )/( (Total Assets (Q: Sep. 2015 )+Total Assets (Q: Dec. 2015 ))/ count )
=1150/( (16557+16326)/ 2 )
=1150/16441.5
=0.07

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Pepco Holdings  (NYSE:POM) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Pepco Holdings's annulized ROE % for the quarter that ended in Dec. 2015 is

ROE %**(Q: Dec. 2015 )
=Net Income/Total Stockholders Equity
=520/4380.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(520 / 4600)*(4600 / 16441.5)*(16441.5/ 4380.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.3 %*0.2798*3.7533
=ROA %*Equity Multiplier
=3.16 %*3.7533
=11.87 %

Note: The Net Income data used here is four times the quarterly (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 2015) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Pepco Holdings's annulized ROA % for the quarter that ended in Dec. 2015 is

ROA %(Q: Dec. 2015 )
=Net Income/Total Assets
=520/16441.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(520 / 4600)*(4600 / 16441.5)
=Net Margin %*Asset Turnover
=11.3 %*0.2798
=3.16 %

Note: The Net Income data used here is four times the quarterly (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 2015) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Pepco Holdings Asset Turnover Related Terms

Thank you for viewing the detailed overview of Pepco Holdings's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Pepco Holdings (Pepco Holdings) Business Description

Traded in Other Exchanges
N/A
Address
Pepco Holdings Inc was incorporated in Delaware in 2001, for the purpose of effecting the acquisition of Conectiv by Potomac Electric Power Company. Pepco Holdings, Inc. is a public utility holding Company that, through its operating subsidiaries, is engaged in two principal business operations: electricity and natural gas delivery, and competitive energy generation, marketing and supply. Pepco is engaged in the transmission and distribution of electricity in Washington, D.C. and portions of Prince George's and Montgomery Counties in suburban Maryland. Pepco was incorporated in Washington, D.C. in 1896 and became a domestic Virginia corporation in 1949. PHI, through its subsidiaries, is subject to regulation by various federal, regional, state, and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal, and limitations on land use. Pepco Energy Services sells retail electricity and natural gas and provides integrated energy management services in the mid-Atlantic region, and its subsidiaries own and operate generation plants located in PJM. Pepco Energy Services also provides high voltage construction and maintenance services to utilities and other customers throughout the United States and low voltage electric and telecommunication construction and maintenance services in the Washington, D.C. area. PHI's business is to remain a regional diversified energy delivery utility and competitive energy services Company focused on value creation and operational excellence.
Executives
Laura L. Monica officer: VICE PRESIDENT 1025 LAUREL OAK ROAD, VOORHEES NJ 08043
Joseph M Rigby director, officer: CHAIRMAN, PRESIDENT AND CEO SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Terence C Golden director BAILEY CAPITAL CORPORATION, SUITE 601, 1156 - 15TH STREET, NW, WASHINGTON DC 20005
David M Velazquez officer: EXECUTIVE VICE PRESIDENT CONECTIV ENERGY, 500 N WAKEFIELD DRIVE, NEWARK DE 19702
Lawrence C Nussdorf director CLARK ENTERPRISES, INC., 7500 OLD GEORGETOWN RD., 15TH FLOOR, BETHESDA MD 20814-6195
Dunn Jack B Iv director 500 EAST PRATT STREET, C/O FTI CONSULTING, INC., BALTIMORE MD 21202
Patricia A. Oelrich director 62 ETTL CIRCLE, PRINCETON NJ 08540
Paul M Barbas director C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432
Patrick T Harker director C/O GOLDMAN SACHS HEDGE FUND STRATEGIES, 32 OLD SLIP, 9TH FLOOR, NEW YORK NY 10005
Frank K Ross director 1115 30TH STREET NW, WASHINGTON DC 07002
George F Maccormack director PEPCO HOLDINGS, INC., 701 NINTH STREET, NW, SUITE 1300, WASHINGTON DC 20068
Dennis R Wraase director, officer: Chairman of the Board C/O NORTHEAST UTILITIES, 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Paul H Barry officer: Sr. VP & CFO 701 NINTH STREET NW, WASHINGTON DC 20068
Thomas S Shaw officer: Exec. VP & COO C/O CONECTIV, 800 KING ST PO BOX 231, WILMINGTON DE 19899
Cronin Edmund B Jr director WRIT, SUITE 800, 6110 EXECUTIVE BOULEVARD, ROCKVILLE MD 20852