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