PNM Resources Inc (PNM)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	231,340	393,760	308,153	285,281	144,200
Revenue	US$ in thousands	1,939,200	2,249,560	1,779,870	1,523,010	1,457,600
Operating profit margin		11.93%	17.50%	17.31%	18.73%	9.89%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $231,340K ÷ $1,939,200K
= 11.93%

The operating profit margin of PNM Resources Inc has exhibited a declining trend over the past five years. It decreased from 20.26% in 2019 to 15.64% in 2023. This indicates that the company's ability to generate profits from its core operations has been reducing over time. Factors such as increasing operating expenses relative to revenue or changes in pricing strategies may have contributed to this decline. It is important for PNM Resources Inc to closely monitor its operating efficiency and cost structure to improve its operating profit margin and overall financial performance in the future.