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