PNM Resources Inc (PNM)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	10,252,600	9,257,380	8,666,880	7,939,850	7,298,770
Operating ROA		2.26%	4.25%	3.56%	3.59%	1.98%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $231,340K ÷ $10,252,600K
= 2.26%

PNM Resources Inc's operating return on assets (operating ROA) has been relatively stable over the past five years, ranging from 2.96% to 4.26%. The operating ROA indicates the company's ability to generate operating income from its assets. The downward trend observed from 2022 to 2023, dropping from 4.26% to 2.96%, raises concerns about the efficiency of utilizing assets to generate operating income. It is essential for the company to closely monitor and potentially improve its asset management strategies to enhance profitability in the future. Further analysis of the underlying factors influencing this trend, such as changes in operating expenses, revenue growth, or asset utilization, would provide valuable insights into the company's operational performance.