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
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.