PNM Resources Inc (PNM)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,939,200	2,249,560	1,779,870	1,523,010	1,457,600
Total assets	US$ in thousands	10,252,600	9,257,380	8,666,880	7,939,850	7,298,770
Total asset turnover		0.19	0.24	0.21	0.19	0.20

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,939,200K ÷ $10,252,600K
= 0.19

Based on the data provided, PNM Resources Inc's total asset turnover has shown fluctuations over the past five years. Total asset turnover measures the efficiency of a company in generating sales revenue from its investment in total assets.

In 2023, PNM Resources Inc's total asset turnover decreased to 0.19 from 0.24 in 2022, indicating a decline in the efficiency of generating sales relative to its total assets. This could imply that the company was less effective in utilizing its assets to generate revenue during the year.

Comparing the figure to 2021, where the total asset turnover was 0.21, 2023's lower ratio suggests that the company's asset utilization efficiency declined further. The total asset turnover of 0.19 in 2023 is also similar to the ratio in 2020 (0.19) and slightly lower than the ratio in 2019 (0.20).

Overall, the decreasing trend in total asset turnover over the past two years may indicate a potential inefficiency in the company's asset management, as it is generating less revenue per dollar of assets invested. Further analysis of the company's operations and financial performance would be necessary to understand the reasons behind the fluctuations in total asset turnover and to identify potential areas for improvement in asset utilization efficiency.