PNM Resources Inc (PNM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 13.09 | 16.92 | 19.04 | 24.52 | 22.61 | 21.38 | 16.48 | 14.77 | 13.50 | 10.81 | 8.47 | 8.40 | 7.63 | 7.20 | 6.90 | 6.32 | 6.04 | 5.94 | 6.14 | 6.64 |
| Receivables turnover | 9.84 | 8.57 | 12.15 | 12.80 | 9.02 | 8.52 | 8.78 | 11.46 | 9.57 | 8.08 | 8.16 | 10.29 | 8.72 | 7.37 | 8.58 | 10.81 | 9.83 | 8.24 | 9.69 | 10.39 |
| Payables turnover | 6.25 | 8.98 | 10.45 | 12.90 | 7.00 | 10.87 | 9.56 | 8.81 | 5.09 | 6.44 | 4.09 | 4.72 | 2.99 | 5.73 | 6.33 | 4.92 | 4.56 | 5.66 | 5.65 | 5.80 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios of PNM Resources Inc indicate the efficiency of the company in managing its operations related to inventory, receivables, and payables.
1. Inventory turnover:
- The inventory turnover ratios have shown fluctuations over the past eight quarters, ranging from 9.12 to 18.62.
- This ratio indicates how effectively the company is managing its inventory levels and converting them into sales.
- A higher inventory turnover ratio implies efficient management of inventory and quick sales realization.
2. Receivables turnover:
- The receivables turnover ratios have varied between 7.09 and 11.43 during the same period.
- This ratio reflects the speed at which the company collects payments from its customers.
- An increasing trend in receivables turnover signifies prompt collection of receivables and efficient credit management.
3. Payables turnover:
- The payables turnover ratios have fluctuated between 4.36 and 9.79 over the past quarters.
- This ratio indicates how efficiently the company is managing its payables and meeting its obligations to suppliers.
- A higher payables turnover implies a faster payment cycle to suppliers, which can be advantageous in maintaining good supplier relationships.
4. Working capital turnover:
- The table does not provide data for the working capital turnover ratio for PNM Resources Inc.
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales.
- This ratio is useful in assessing the efficiency of working capital management in supporting operational activities.
In conclusion, analyzing the activity ratios of PNM Resources Inc provides insights into its operational efficiency, inventory management, receivables collection, and payment practices. It is essential for the company to monitor these ratios regularly to ensure effective working capital management and sustainable operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 27.88 | 21.58 | 19.17 | 14.88 | 16.14 | 17.08 | 22.15 | 24.71 | 27.04 | 33.77 | 43.09 | 43.46 | 47.85 | 50.73 | 52.92 | 57.76 | 60.45 | 61.40 | 59.43 | 54.94 |
| Days of sales outstanding (DSO) | days | 37.09 | 42.58 | 30.04 | 28.51 | 40.48 | 42.83 | 41.58 | 31.86 | 38.12 | 45.17 | 44.72 | 35.46 | 41.84 | 49.55 | 42.53 | 33.76 | 37.12 | 44.29 | 37.67 | 35.11 |
| Number of days of payables | days | 58.35 | 40.63 | 34.92 | 28.30 | 52.17 | 33.58 | 38.16 | 41.43 | 71.73 | 56.65 | 89.19 | 77.38 | 121.97 | 63.70 | 57.68 | 74.18 | 79.99 | 64.51 | 64.55 | 62.92 |
The activity ratios of PNM Resources Inc show variations over the quarters in Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
The Days of Inventory on Hand (DOH) measures how many days a company's current inventory level could be sustained. In the latest quarter, DOH increased significantly from 19.60 days in Q1 2023 to 40.03 days in Q4 2023, indicating that the company may be carrying more inventory relative to its sales.
The Days of Sales Outstanding (DSO) represents the average number of days it takes for a company to collect revenue after a sale is made. The trend for DSO shows a decrease from 31.93 days in Q1 2023 to 51.49 days in Q4 2023, highlighting that the company is taking longer to collect its receivables from customers.
The Number of Days of Payables measures how long a company takes to pay off its suppliers. The data demonstrates fluctuations in this ratio, with an increase in the latest quarter from 37.27 days in Q1 2023 to 83.78 days in Q4 2023, indicating a potential extension in payment terms with suppliers.
Overall, the changes in these activity ratios suggest potential shifts in PNM Resources Inc's inventory management, accounts receivable collection efficiency, and accounts payable management practices over the quarters, which could have implications for the company's working capital management and liquidity position. Further analysis and monitoring of these ratios are crucial to understanding the company's operational efficiency and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.19 | 0.21 | 0.24 | 0.25 | 0.24 | 0.23 | 0.22 | 0.21 | 0.21 | 0.21 | 0.20 | 0.20 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.21 | 0.20 |
The fixed asset turnover ratio for PNM Resources Inc has shown a declining trend over the past eight quarters, decreasing from 0.27 in Q1 2022 to 0.25 in Q4 2023. This indicates that the company is generating $0.25 in revenue for every $1 invested in fixed assets, reflecting a decrease in the efficiency of utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also exhibited a downward trend from 0.21 in Q1 2022 to 0.19 in Q4 2023. This ratio signifies that the company is generating $0.19 in revenue for every $1 of total assets. The decline in this ratio suggests that PNM Resources Inc's overall asset utilization efficiency has deteriorated over the past eight quarters.
Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios indicate that PNM Resources Inc may be facing challenges in effectively utilizing its assets to generate revenue, which could potentially impact its long-term financial performance and operational efficiency.