PNM Resources Inc (PNM)

Debt-to-assets ratio

		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
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 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
Debt-to-assets ratio		0.41	0.39	0.41	0.39	0.42	0.43	0.40	0.41	0.41	0.41	0.39	0.28	0.34	0.32	0.32	0.33	0.34	0.34	0.38	0.38

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 been relatively stable over the past eight quarters, ranging from 0.45 to 0.49. This ratio indicates that, on average, approximately 47% to 49% of the company's assets are financed through debt. A higher ratio suggests a higher reliance on debt to finance operations and expansion, which can increase financial risk but also potentially amplify returns. In this case, PNM Resources Inc has maintained a moderate level of debt relative to its assets, indicating a balanced approach to capital structure management. Continuing to monitor this ratio will be crucial to ensure the company maintains a healthy level of leverage for sustainable growth and profitability.