TXNM Energy, Inc. (TXNM)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	242,682	88,346	170,058	196,357	173,303
Total assets	US$ in thousands	11,211,700	10,252,600	9,257,380	8,666,880	7,939,850
ROA		2.16%	0.86%	1.84%	2.27%	2.18%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $242,682K ÷ $11,211,700K
= 2.16%

TXNM Energy, Inc.'s return on assets (ROA) has fluctuated over the past five years based on the provided data. The company's ROA was 2.18% at the end of December 31, 2020, showing a decent return on the assets employed. Subsequently, there was a slight improvement to 2.27% by the end of December 31, 2021.

However, in the following years, TXNM Energy, Inc.'s ROA declined. By December 31, 2022, the ROA decreased to 1.84%, indicating a lower return generated from its assets. This decreasing trend continued in the subsequent year as the ROA further dropped to 0.86% by December 31, 2023, signaling potential inefficiencies in asset utilization.

Despite the declines in the previous years, there was a notable recovery in the company's ROA by the end of December 31, 2024, with the ratio increasing to 2.16%. This uptick suggests improved performance in generating earnings relative to the assets owned.

In conclusion, while TXNM Energy, Inc. experienced fluctuations in its ROA over the past five years, the company managed to bounce back in 2024. It would be crucial for TXNM Energy, Inc. to assess and address the factors contributing to the variations in ROA to sustain and enhance its profitability and asset utilization efficiency in the future.