PNM Resources Inc (PNM)

Return on assets (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
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
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
ROA		0.86%	1.54%	2.48%	2.24%	1.84%	1.83%	1.76%	2.23%	2.27%	2.35%	2.49%	2.59%	2.18%	2.53%	2.33%	0.59%	1.06%	-0.13%	-0.35%	1.23%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $88,345K ÷ $10,252,600K
= 0.86%

To analyze PNM Resources Inc's return on assets (ROA), we observe fluctuations in ROA over the past eight quarters. ROA measures a company's ability to generate profits from its total assets. PNM Resources Inc's ROA has shown variability, ranging from a low of 0.86% in Q4 2023 to a high of 2.48% in Q2 2023. During this period, the company's ROA peaked in Q2 2023 before declining in subsequent quarters.

The average ROA for PNM Resources Inc over these eight quarters is approximately 1.90%. This indicates that, on average, the company has generated $1.90 in net income for every $100 of total assets. A higher ROA suggests better efficiency in asset utilization and profitability. However, the decreasing trend in ROA from Q2 2023 onwards may raise concerns about the company's ability to maintain or improve its profitability relative to its asset base.

It is essential for stakeholders to closely monitor PNM Resources Inc's ROA performance to assess its financial health and operational efficiency. Factors affecting ROA include operational costs, asset management strategies, revenue generation, and economic conditions. Continuing to analyze and interpret ROA trends can provide valuable insights into the company's overall financial performance and prospects for future growth.