PNM Resources Inc (PNM)

Net profit margin

		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
Net income (ttm)	US$ in thousands	88,345	154,317	239,024	209,081	170,058	165,533	156,421	194,769	196,357	193,783	202,098	205,746	172,775	195,802	176,805	43,402	77,362	-9,520	-24,770	89,352
Revenue (ttm)	US$ in thousands	1,939,198	2,102,903	2,326,940	2,349,514	2,249,555	2,107,811	1,932,474	1,859,284	1,779,873	1,705,074	1,622,988	1,554,097	1,523,012	1,507,880	1,469,001	1,441,580	1,457,603	1,457,215	1,446,295	1,468,380
Net profit margin		4.56%	7.34%	10.27%	8.90%	7.56%	7.85%	8.09%	10.48%	11.03%	11.37%	12.45%	13.24%	11.34%	12.99%	12.04%	3.01%	5.31%	-0.65%	-1.71%	6.09%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $88,345K ÷ $1,939,198K
= 4.56%

Net profit margin is a key profitability ratio that measures the percentage of revenue that translates into net income after all expenses have been deducted. For PNM Resources Inc, the net profit margin has fluctuated over the past eight quarters, ranging from 4.53% to 10.25%.

In Q1 2022, the net profit margin was at its highest level of 10.45%, indicating that the company was able to convert a significant portion of its revenue into profit. However, in the subsequent quarters, the net profit margin experienced a downward trend, reaching a low of 4.53% in Q4 2023.

The decreasing trend in the net profit margin could suggest potential challenges in managing operating expenses or generating sufficient revenue to cover costs. It is essential for the company to closely monitor and address the factors impacting profitability to ensure sustainable financial performance.

Overall, the fluctuating net profit margin of PNM Resources Inc highlights the importance of closely monitoring profitability metrics and implementing strategies to enhance efficiency and optimize financial performance.