TXNM Energy, Inc. (TXNM)

Short-term

Turnover ratios

TXNM Energy, Inc.'s inventory turnover has shown a varying trend over the years. The turnover ratio has increased from 8.81 in 2020 to 17.01 in 2022, indicating that the company was able to sell its inventory more efficiently during this period. However, there was a notable dip to 4.06 in 2024, suggesting a potential issue with managing inventory or slowing sales.

On the other hand, TXNM Energy, Inc. did not provide data for receivables turnover, payables turnover, or working capital turnover for the years analyzed. This lack of information limits the ability to assess the efficiency in collecting receivables, managing payables, or utilizing working capital to generate sales during these periods.

Overall, while the inventory turnover provides some insights into the efficiency of inventory management at TXNM Energy, Inc., the absence of data for other activity ratios hinders a more comprehensive assessment of the company's overall operational efficiency and working capital management over the years.

---

Average number of days

TXNM Energy, Inc. has shown a downward trend in its Days of Inventory on Hand (DOH) ratio over the past five years, decreasing from 41.42 days as of December 31, 2020, to 21.45 days as of December 31, 2022, before rising sharply to 89.86 days by December 31, 2024. This indicates that the company has become more efficient in managing its inventory initially but faced challenges in inventory management towards the end of the period.

The Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not available for analysis for any of the years provided. The absence of data on DSO and payables days limits the overall assessment of the company's ability to collect receivables and manage its payables efficiently.

Based on the available information, TXNM Energy, Inc. should focus on evaluating its inventory management practices to address the significant increase in days of inventory on hand observed in the most recent year. Tracking and improving DSO and payables days would further enhance its working capital management efficiency and overall financial performance.

---

Long-term

TXNM Energy, Inc.'s long-term activity ratios reflect its efficiency in generating sales from its assets. The fixed asset turnover ratio, which measures how well the company utilizes its fixed assets to generate revenue, remained constant at zero from 2020 to 2024. This indicates that the company did not generate any revenue from its fixed assets during this period.

On the other hand, the total asset turnover ratio, which reveals the company's ability to generate sales from all its assets, fluctuated between 0.18 and 0.24 from 2020 to 2024. The decreasing trend from 2020 to 2024 suggests that TXNM Energy, Inc. may have faced challenges in utilizing its total assets effectively to generate revenue over time.

Overall, the long-term activity ratios of TXNM Energy, Inc. indicate a need for the company to improve its asset utilization efficiency, particularly in terms of its total assets, to enhance its operational performance and profitability in the future.