PNM Resources Inc (PNM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	475,543	410,978	324,600	377,479	294,010
Total current liabilities	US$ in thousands	1,230,760	890,370	664,213	977,662	967,481
Current ratio		0.39	0.46	0.49	0.39	0.30

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $475,543K ÷ $1,230,760K
= 0.39

The current ratio of PNM Resources Inc has been fluctuating over the past five years. As of December 31, 2023, the current ratio stands at 0.39, which is lower compared to the previous two years. This suggests that the company's current assets may not be sufficient to cover its current liabilities as effectively as in prior years. A current ratio below 1 indicates potential liquidity concerns, as the company may struggle to pay off its short-term obligations. It is important for PNM Resources Inc to closely monitor and manage its current assets and liabilities to improve its liquidity position and ensure financial stability.