PNM Resources Inc (PNM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.82% | 32.92% | 36.46% | 39.84% | 67.71% |
| Operating profit margin | 11.93% | 17.50% | 17.31% | 18.73% | 9.89% |
| Pretax margin | 3.71% | 8.72% | 12.86% | 12.70% | 3.57% |
| Net profit margin | 4.56% | 7.56% | 11.03% | 11.34% | 5.31% |
The profitability ratios of PNM Resources Inc have shown a mixed trend over the past five years.
1. Gross Profit Margin:
- The gross profit margin has fluctuated, starting at 61.90% in 2019, dropping to 55.68% in 2021, and then increasing to 53.91% in 2023. This indicates that the company's ability to generate profits from its core business activities has been variable.
2. Operating Profit Margin:
- The operating profit margin has also shown some variability, with a gradual decline from 20.26% in 2019 to 15.64% in 2023. This suggests that the company's operating efficiency may have been impacted over the years.
3. Pretax Margin:
- The pretax margin has experienced fluctuations, with a significant decrease from 13.73% in 2021 to 4.67% in 2023. This indicates that the company's profitability before accounting for taxes has been under pressure in recent years.
4. Net Profit Margin:
- The net profit margin has shown a similar trend to the pretax margin, declining from 11.34% in 2020 to 4.53% in 2023. This indicates that the company's profitability after accounting for all expenses and taxes has also been on a downward trajectory.
In conclusion, PNM Resources Inc's profitability ratios have displayed a mixed performance over the years, with fluctuations in margins suggesting changes in the company's ability to generate profits from its operations. Further analysis of the underlying factors driving these trends would be beneficial for a more comprehensive assessment of the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.26% | 4.25% | 3.56% | 3.59% | 1.98% |
| Return on assets (ROA) | 0.86% | 1.84% | 2.27% | 2.18% | 1.06% |
| Return on total capital | 3.51% | 6.47% | 5.42% | 6.45% | 4.13% |
| Return on equity (ROE) | 3.76% | 7.76% | 9.06% | 8.43% | 4.61% |
PNM Resources Inc's profitability ratios show a fluctuating trend over the past five years. The Operating return on assets (Operating ROA) decreased from 4.05% in 2019 to 2.96% in 2023, indicating a decline in the company's ability to generate operating income from its total assets.
The Return on assets (ROA) also decreased from 2.26% in 2021 to 0.86% in 2023, indicating a decline in the company's overall profitability relative to its total assets. This decrease suggests that the company may be less efficient in generating profits from its assets.
The Return on total capital decreased from 6.05% in 2019 to 4.24% in 2023, indicating a decline in the company's ability to generate returns from its total capital employed. This decrease suggests that the company may be facing challenges in utilizing its capital effectively to generate profits.
The Return on equity (ROE) also decreased from 8.99% in 2021 to 3.72% in 2023, indicating a decline in the company's ability to generate returns for its shareholders. This decrease suggests that investors may be experiencing lower returns on their equity investments in the company.
Overall, PNM Resources Inc's profitability ratios have shown a decreasing trend over the past five years, indicating potential challenges in generating profits and returns for its assets, capital, and shareholders.