PNM Resources Inc (PNM)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	88,346	170,058	196,357	172,775	77,362
Total assets	US$ in thousands	10,252,600	9,257,380	8,666,880	7,939,850	7,298,770
ROA		0.86%	1.84%	2.27%	2.18%	1.06%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $88,346K ÷ $10,252,600K
= 0.86%

PNM Resources Inc's return on assets (ROA) has demonstrated a declining trend over the past five years, decreasing from 1.06% in 2019 to 0.86% in 2023. This suggests that the company's ability to generate profits from its assets has weakened. The ROA of 0.86% in 2023 indicates that for every dollar of assets the company possesses, it generated a return of 0.86 cents. This decline in ROA could be a concern for investors and stakeholders as it may indicate inefficiencies in asset utilization or a decrease in profitability relative to the size of the asset base. Further analysis of the company's financial performance and operational efficiency is recommended to understand the underlying factors driving the decrease in ROA and to assess the company's overall financial health.