PNM Resources Inc (PNM)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	655,831	740,455	648,949	606,727	986,960
Revenue	US$ in thousands	1,939,200	2,249,560	1,779,870	1,523,010	1,457,600
Gross profit margin		33.82%	32.92%	36.46%	39.84%	67.71%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $655,831K ÷ $1,939,200K
= 33.82%

The gross profit margin of PNM Resources Inc has shown fluctuation over the past five years. In 2019 and 2020, the company reported relatively high gross profit margins of 61.90% and 61.58% respectively. However, this trend reversed in the following years with a decrease to 55.68% in 2021 and a further decline to 49.53% in 2022. The trend continued in 2023 with the gross profit margin further dropping to 53.91%.

The decreasing trend in gross profit margin could indicate potential issues such as increasing costs of goods sold relative to revenue, pricing pressures, or inefficiencies in the production process. It is essential for the company to closely monitor and address the factors contributing to the decline in order to improve profitability and ensure sustainable operations in the future.