TXNM Energy, Inc. (TXNM)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	453,486	330,620	226,192	212,839	231,340	334,610	430,721	424,783	393,760	376,278	345,244	333,055	308,153	287,686	283,762	280,709	285,281	327,245	319,980	155,215
Total assets	US$ in thousands	11,211,700	10,843,500	10,583,400	10,257,700	10,252,600	10,050,800	9,626,970	9,353,140	9,625,570	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
Operating ROA		4.04%	3.05%	2.14%	2.07%	2.26%	3.33%	4.47%	4.54%	4.09%	4.17%	3.87%	3.82%	3.56%	3.48%	3.49%	3.53%	3.59%	4.23%	4.22%	2.10%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $453,486K ÷ $11,211,700K
= 4.04%

TXNM Energy, Inc.'s operating return on assets (operating ROA) has shown fluctuations over the past few years. The ratio started at a relatively low level of 2.10% as of March 31, 2020, but increased to 4.23% by September 30, 2020, indicating an improvement in the company's ability to generate operating profits from its assets. However, there was a slight decline in the ratio to 3.59% by the end of December 2020.

Throughout 2021 and the first half of 2022, operating ROA remained relatively stable around the 3.5% to 3.8% range, suggesting consistent operational efficiency in utilizing its assets to generate profits. By the end of September 2022, there was a notable increase in operating ROA to 4.17%, reflecting a positive trend in the company's profitability.

Despite this, there was a slight decrease in the ratio in the following quarters of 2022 and into 2023, with operating ROA dropping to 2.26% by the end of December 2023. The ratio continued to decrease, reaching its lowest point of 2.07% as of March 31, 2024.

However, there was a significant improvement in operating ROA by the end of December 2024, where the ratio increased to 4.04%. This uptick may indicate a potential recovery in the company's profitability and operational performance. Overall, the trend in TXNM Energy, Inc.'s operating return on assets highlights fluctuations in the company's ability to efficiently generate profits from its operational activities.