PNM Resources Inc (PNM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,349,090	2,191,930	2,167,520	2,049,460	1,678,700
Debt-to-capital ratio		0.64	0.64	0.62	0.57	0.60

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,241,640K ÷ ($4,241,640K + $2,349,090K)
= 0.64

The debt-to-capital ratio of PNM Resources Inc has shown a fluctuating trend over the past five years, ranging from 0.62 to 0.67. The ratio indicates the proportion of a company's capital structure that is financed by debt.

The increase in the debt-to-capital ratio from 0.62 in 2020 to 0.67 in 2023 suggests a higher reliance on debt financing relative to total capital. This could indicate increased borrowing to fund operations, investments, or other activities.

While the ratios have varied, they have generally remained within a relatively narrow range, indicating a consistent approach to managing the company's capital structure. However, it is essential for investors and stakeholders to closely monitor changes in the debt-to-capital ratio to assess the company's financial risk and leverage position effectively.