PNM Resources Inc (PNM)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	4,241,640	3,892,590	3,519,580	2,719,630	2,517,450
Total assets	US$ in thousands	10,252,600	9,257,380	8,666,880	7,939,850	7,298,770
Debt-to-assets ratio		0.41	0.42	0.41	0.34	0.34

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,241,640K ÷ $10,252,600K
= 0.41

The debt-to-assets ratio of PNM Resources Inc has shown some fluctuation over the past five years, ranging from 0.42 to 0.47. This ratio indicates the proportion of the company's assets funded by debt. In general, a higher ratio suggests higher financial risk as more of the assets are financed through debt. PNM Resources Inc's ratios ranging between 0.42 to 0.47 over the five-year period indicate a relatively stable and conservative approach to debt financing. It is essential for the company to monitor this ratio closely to ensure a healthy balance between debt and assets, maintaining financial stability and flexibility.