TXNM Energy, Inc. (TXNM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,547,910 | 2,360,620 | 2,203,460 | 2,179,050 | 2,060,990 |
| ROE | 9.52% | 3.74% | 7.72% | 9.01% | 8.41% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $242,682K ÷ $2,547,910K
= 9.52%
TXNM Energy, Inc.'s return on equity (ROE) has varied over the past five years, with the following figures: 8.41% as of December 31, 2020, 9.01% as of December 31, 2021, 7.72% as of December 31, 2022, 3.74% as of December 31, 2023, and 9.52% as of December 31, 2024.
The company's ROE has shown fluctuations during this period, indicating changes in the efficiency of the company in generating profits from shareholders' equity. The increase in ROE from 2020 to 2021 is a positive sign of improved profitability. However, the subsequent decrease in ROE in 2022 and 2023 suggests a potential decline in profitability or the company's ability to utilize equity effectively.
The significant rebound in ROE in 2024 to 9.52% is a positive development, indicating a potential resurgence in profitability and efficiency in utilizing equity. It is important for the company to sustain and potentially improve its ROE in the future to demonstrate consistent profitability and effective management of shareholder investments. Further analysis of the company's financial performance and operational strategies would provide a more comprehensive understanding of the factors influencing its ROE dynamics.
Peer comparison
Dec 31, 2024