TXNM Energy, Inc. (TXNM)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	508,306	280,884	341,319	343,626	325,281
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,547,910	2,360,620	2,203,460	2,179,050	2,060,990
Return on total capital		19.95%	11.90%	15.49%	15.77%	15.78%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $508,306K ÷ ($—K + $2,547,910K)
= 19.95%

TXNM Energy, Inc.'s return on total capital has exhibited some fluctuations over the past five years. The company's return on total capital was 15.78% as of December 31, 2020, showing a marginal decrease to 15.77% by the end of 2021. However, there was a more significant decline to 15.49% as of December 31, 2022. The return on total capital decreased further to 11.90% by the end of 2023, indicating a notable drop in profitability.

However, there was a noteworthy recovery in the company's return on total capital as of December 31, 2024, rising to 19.95%. This improvement suggests that TXNM Energy, Inc. may have implemented strategic initiatives to enhance its profitability and efficiency in capital utilization during that period.

Overall, the variations in TXNM Energy, Inc.'s return on total capital demonstrate the company's ability to adapt to changing market conditions and implement measures to improve its financial performance over the years.