PNM Resources Inc (PNM)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	231,340	334,610	430,721	424,783	393,760	376,278	345,244	333,055	308,153	287,686	283,762	280,709	285,281	327,245	319,980	155,215	144,200	66,244	53,694	226,638
Total assets	US$ in thousands	10,252,600	10,050,800	9,626,970	9,353,140	9,257,380	9,028,890	8,911,100	8,727,690	8,666,880	8,256,070	8,120,470	7,943,310	7,939,850	7,742,110	7,574,470	7,375,120	7,298,770	7,200,930	7,048,670	7,250,760
Operating ROA		2.26%	3.33%	4.47%	4.54%	4.25%	4.17%	3.87%	3.82%	3.56%	3.48%	3.49%	3.53%	3.59%	4.23%	4.22%	2.10%	1.98%	0.92%	0.76%	3.13%

December 31, 2023 calculation

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

Operating return on assets (operating ROA) is a key financial ratio that indicates a company's operational efficiency in generating profits relative to its total assets. It is calculated by dividing operating income by average total assets.

Analyzing the trend in PNM Resources Inc's operating ROA over the past eight quarters reveals some fluctuations. The operating ROA has ranged from 2.96% to 4.55% during this period. In general, the trend shows an increase from Q4 2022 to Q2 2023, with the ratio peaking at 4.55% in Q1 2023 before slightly decreasing in subsequent quarters.

The variability in PNM Resources Inc's operating ROA may suggest fluctuations in the company's operational efficiency and profitability relative to its asset base. Investors and stakeholders should continue monitoring this ratio to assess the company's ability to effectively utilize its assets to generate operating income.