PNM Resources Inc (PNM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,349,090	2,191,930	2,167,520	2,049,460	1,678,700
ROE		3.76%	7.76%	9.06%	8.43%	4.61%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $88,346K ÷ $2,349,090K
= 3.76%

The return on equity (ROE) of PNM Resources Inc has fluctuated over the past five years. In 2023, the ROE decreased to 3.72%, a notable decline from the previous year's 7.69%. This downward trend is also evident when comparing the 2023 ROE to the higher levels seen in 2021 (8.99%) and 2020 (8.38%).

The company's ROE in 2019 was 4.58%, indicating a slight improvement in the current year's performance. However, it is important to note that the 2023 ROE still remains significantly lower than the levels achieved in 2020 and 2021.

Overall, PNM Resources Inc's ROE has displayed fluctuations in recent years, suggesting varying levels of profitability and efficiency in utilizing shareholder equity. The downward trend in 2023 may raise concerns about the company's ability to generate returns for its equity investors. Further analysis of the company's financial performance and strategic initiatives may be necessary to understand the factors driving these fluctuations in ROE.