PNM Resources Inc (PNM)
Fixed asset turnover
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 1,939,198 | 2,102,903 | 2,326,940 | 2,349,514 | 2,249,555 | 2,107,811 | 1,932,474 | 1,859,284 | 1,779,873 | 1,705,074 | 1,622,988 | 1,554,097 | 1,523,012 | 1,507,880 | 1,469,001 | 1,441,580 | 1,457,603 | 1,457,215 | 1,446,295 | 1,468,380 |
Property, plant and equipment | US$ in thousands | 3,291 | 717,353 | 593,995 | 491,565 | 3,292 | 485,023 | 390,733 | 313,901 | 3,404 | 350,090 | 293,050 | 282,704 | 3,403 | 379,848 | 309,513 | 240,002 | 3,404 | 258,285 | 202,991 | 225,485 |
Fixed asset turnover | 589.24 | 2.93 | 3.92 | 4.78 | 683.34 | 4.35 | 4.95 | 5.92 | 522.88 | 4.87 | 5.54 | 5.50 | 447.55 | 3.97 | 4.75 | 6.01 | 428.20 | 5.64 | 7.12 | 6.51 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,939,198K ÷ $3,291K
= 589.24
The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets. In the case of PNM Resources Inc, the trend of the fixed asset turnover ratio over the past eight quarters shows some fluctuations. It decreased from 0.27 in Q1 2022 to 0.25 in Q4 2023, with some variation in between.
A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales. In the case of PNM Resources Inc, the ratio has been fluctuating around the 0.3 level, indicating that the company's efficiency in utilizing its fixed assets to generate revenue has been relatively consistent.
Investors and analysts typically look for stable or improving trends in the fixed asset turnover ratio as it reflects the effectiveness of the company's asset management. In the case of PNM Resources Inc, the trend has been somewhat stable around the 0.3 level, suggesting that the company has been managing its fixed assets reasonably well over the past eight quarters.
However, further analysis and comparison with industry peers may provide a better understanding of PNM Resources Inc's performance in utilizing its fixed assets.
Peer comparison
Dec 31, 2023