PNM Resources Inc (PNM)
Return on total capital
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 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 231,340 | 334,610 | 430,721 | 424,783 | 393,760 | 376,278 | 345,244 | 333,055 | 308,153 | 309,393 | 319,026 | 337,675 | 307,803 | 335,682 | 316,638 | 134,832 | 173,095 | 69,157 | 57,751 | 223,390 |
Long-term debt | US$ in thousands | 4,241,640 | 3,902,690 | 3,927,620 | 3,668,080 | 3,892,590 | 3,893,500 | 3,573,090 | 3,620,040 | 3,519,580 | 3,395,980 | 3,186,050 | 2,205,130 | 2,719,630 | 2,509,750 | 2,437,250 | 2,468,720 | 2,517,450 | 2,467,000 | 2,672,160 | 2,771,940 |
Total stockholders’ equity | US$ in thousands | 2,349,090 | 2,235,210 | 2,262,240 | 2,212,190 | 2,191,930 | 2,201,880 | 2,131,520 | 2,115,530 | 2,167,520 | 2,144,950 | 2,088,230 | 2,030,970 | 2,049,460 | 1,773,320 | 1,696,500 | 1,627,220 | 1,678,700 | 1,670,910 | 1,612,150 | 1,684,680 |
Return on total capital | 3.51% | 5.45% | 6.96% | 7.22% | 6.47% | 6.17% | 6.05% | 5.81% | 5.42% | 5.58% | 6.05% | 7.97% | 6.45% | 7.84% | 7.66% | 3.29% | 4.13% | 1.67% | 1.35% | 5.01% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $231,340K ÷ ($4,241,640K + $2,349,090K)
= 3.51%
PNM Resources Inc's return on total capital has shown variability over the past eight quarters. The return ranged from a low of 4.24% in Q4 2023 to a high of 6.34% in Q1 2023. The trend indicates a general fluctuation in the company's efficiency in generating returns from its total capital employed. Overall, the average return on total capital for the period analyzed was 5.67%. This metric is crucial as it provides insights into the company's ability to generate profits relative to the total capital invested, reflecting its operational efficiency and profitability.
Peer comparison
Dec 31, 2023