What is El Paso Electric Co Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. El Paso Electric Co's annualized net income for the quarter that ended in Mar. 2020 was $-140.8 Mil. El Paso Electric Co's average shareholder tangible equity for the quarter that ended in Mar. 2020 was $1,191.2 Mil. Therefore, El Paso Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2020 was -11.82%.
The historical rank and industry rank for El Paso Electric Co's Return-on-Tangible-Equity or its related term are showing as below:
EE's Return-on-Tangible-Equity is not ranked *
in the Utilities - Regulated industry.
Industry Median: 10.815 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
El Paso Electric Co Return-on-Tangible-Equity Historical Data
The historical data trend for El Paso Electric Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
Competitive Comparison of El Paso Electric Co's Return-on-Tangible-Equity
For the Utilities - Regulated Electric subindustry, El Paso Electric Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, El Paso Electric Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where El Paso Electric Co's Return-on-Tangible-Equity falls into.
El Paso Electric Co Return-on-Tangible-Equity Calculation
El Paso Electric Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2019 is calculated as
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2020) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
El Paso Electric Co (NYSE:EE) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
El Paso Electric Co Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of El Paso Electric Co's Return-on-Tangible-Equity 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
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.
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