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.