PNM Resources Inc (PNM)
Current ratio
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 | ||
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Total current assets | US$ in thousands | 475,543 | 489,227 | 404,637 | 351,899 | 410,978 | 409,774 | 370,289 | 301,145 | 324,600 | 447,713 | 391,893 | 328,478 | 377,479 | 377,985 | 326,884 | 287,962 | 294,010 | 341,164 | 299,076 | 457,073 |
Total current liabilities | US$ in thousands | 1,230,760 | 1,478,570 | 1,108,240 | 1,195,460 | 890,370 | 666,469 | 894,484 | 673,043 | 664,213 | 475,207 | 636,467 | 1,511,120 | 977,662 | 1,251,580 | 1,265,770 | 1,114,920 | 967,481 | 945,729 | 666,541 | 664,133 |
Current ratio | 0.39 | 0.33 | 0.37 | 0.29 | 0.46 | 0.61 | 0.41 | 0.45 | 0.49 | 0.94 | 0.62 | 0.22 | 0.39 | 0.30 | 0.26 | 0.26 | 0.30 | 0.36 | 0.45 | 0.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $475,543K ÷ $1,230,760K
= 0.39
The current ratio, calculated as current assets divided by current liabilities, provides insight into a company's short-term liquidity and ability to meet its short-term obligations. A current ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities with its current assets alone.
Analyzing the current ratio of PNM Resources Inc over the past eight quarters, we observe a declining trend from Q1 2022 to Q4 2023. The current ratio decreased from 0.45 in Q1 2022 to 0.39 in Q4 2023, reaching its lowest point of 0.29 in Q1 2023.
The decreasing trend in the current ratio indicates a potential deterioration in the company's short-term liquidity position over the past quarters. A current ratio below 1, as observed in most of the quarters, suggests that PNM Resources Inc may face challenges in covering its short-term obligations with its current assets alone.
Further analysis and consideration of the company's operating cash flows and working capital management practices are recommended to gain a comprehensive understanding of PNM Resources Inc's liquidity position and ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023