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
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