TXNM Energy, Inc. (TXNM)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	498,836	475,543	410,978	324,600	377,479
Total current liabilities	US$ in thousands	1,775,100	1,230,760	890,370	664,213	977,662
Current ratio		0.28	0.39	0.46	0.49	0.39

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $498,836K ÷ $1,775,100K
= 0.28

TXNM Energy, Inc.'s current ratio has been fluctuating over the past five years, ranging from 0.28 to 0.49. The current ratio is a measure of the company's ability to cover its short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities.

In the case of TXNM Energy, Inc., the current ratio has generally been below 1, indicating a potential liquidity concern. A ratio of 0.49 in December 31, 2021, showed improvement from the previous year, but the subsequent decrease to 0.46 by December 31, 2022, raises some red flags. The ratio dropping to 0.28 by December 31, 2024, indicates a significant decrease in the company's ability to cover its short-term obligations.

It is crucial for TXNM Energy, Inc. to closely monitor and improve its current ratio in order to ensure sufficient liquidity to meet its short-term financial obligations. Additional analysis of the company's current assets and liabilities is recommended to determine the underlying reasons for the fluctuation in the current ratio over the years.