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.


Peer comparison

Dec 31, 2023