TXNM Energy, Inc. (TXNM)

Short-term

Turnover ratios

TXNM Energy, Inc.'s activity ratios provide insight into how efficiently the company manages its operations. The inventory turnover ratio has shown a general increasing trend over the years, indicating that the company is selling its inventory at a faster pace. This implies effective management of inventory levels, potentially reducing carrying costs and obsolete inventory.

The receivables turnover ratio fluctuates, showing some variability in the company's ability to collect its accounts receivable. However, the ratio generally indicates that TXNM Energy is efficient in collecting payments from customers. The absence of data for the latter part of the period limits a detailed analysis of this ratio's trend beyond 2022.

The payables turnover ratio has shown an increasing trend over the years, indicating that the company is taking longer to pay its suppliers. This may suggest favorable credit terms with suppliers or potential liquidity issues. However, the absence of data for the latter part of the period limits a comprehensive analysis of this ratio's trend beyond 2022.

The working capital turnover ratio data is not available for the period under consideration, making it challenging to assess how effectively TXNM Energy is utilizing its working capital to generate sales. Overall, these activity ratios collectively provide insights into the efficiency and effectiveness of TXNM Energy's operations over the years.

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Average number of days

TXNM Energy, Inc.'s activity ratios show trends in how effectively the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The DOH ratio measures how many days a company holds inventory before selling it. From March 31, 2020, to December 31, 2024, TXNM Energy's DOH decreased significantly, indicating improved inventory management efficiency. The reduction from 57.76 days in March 2020 to 16.07 days in December 2022 suggests the company is optimizing its inventory turnover.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for a company to collect its accounts receivable. TXNM Energy's DSO fluctuated between 33.76 days in March 2020 and 45.17 days in September 2021, showing some variability in collecting receivables. It's noteworthy that data for DSO is missing for periods after December 31, 2022, which may indicate a lack of collection efficiency insights in the later periods.

3. Number of Days of Payables: This ratio represents the average number of days a company takes to pay its suppliers. TXNM Energy's days of payables ranged from 121.97 days in December 2020 to 33.58 days in September 2022. The decreasing trend from 2020 to 2022 may suggest either improved payment management or changes in supplier terms. Similar to DSO, data for days of payables is missing for periods after September 30, 2022.

Overall, the decreases in DOH and fluctuations in DSO and days of payables suggest that TXNM Energy has made efforts towards more efficient working capital management, but the missing data points may hamper a complete assessment of recent trends in activity ratios.

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Long-term

TXNM Energy, Inc.'s Fixed Asset Turnover ratio has shown some fluctuations over the years. It started at a high of 6.01 in March 2020, then decreased to 4.75 in June 2020, and further decreased to 3.97 in September 2020. Surprisingly, it dramatically spiked to 447.55 in December 2020, suggesting a significant increase in sales compared to the fixed assets. Subsequently, the ratio stabilized around 5.5 to 5.9 from March 2021 to March 2022, indicating that the company was able to generate consistent revenues relative to its fixed assets during this period.

On the other hand, TXNM Energy, Inc.'s Total Asset Turnover ratio remained relatively stable, fluctuating slightly between 0.19 and 0.23 from March 2020 to December 2022. This suggests that the company was efficient in generating sales in relation to its total assets during this period. However, there was a noticeable increase in the ratio from March 2023 to March 2024, reaching 0.25 in March 2023 before slightly declining thereafter.

Overall, the Fixed Asset Turnover and Total Asset Turnover ratios both provide insights into TXNM Energy, Inc.'s efficiency in utilizing its assets to generate sales over the years. While the Fixed Asset Turnover ratio indicates how well the company is using its fixed assets to generate revenue, the Total Asset Turnover ratio showcases the efficiency of the company in generating sales in relation to its overall asset base.