TXNM Energy, Inc. (TXNM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.40 | 4.34 | 4.20 | 3.98 | 3.85 |
TXNM Energy, Inc. has consistently maintained a strong solvency position based on its solvency ratios over the years. The Debt-to-assets ratio has remained at 0.00% from 2020 to 2024, indicating that the company's total debt is negligible in relation to its total assets, reflecting a low level of financial risk associated with its asset base.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at 0.00% during the same period, suggesting that the company relies very little on debt financing in relation to its total capital and equity, respectively.
The Financial leverage ratio has shown a slight increasing trend from 3.85 in 2020 to 4.40 in 2024. This ratio indicates the extent to which the company is using debt to finance its assets, with a higher ratio suggesting a higher level of financial risk. Despite the gradual increase in this ratio, the overall level remains relatively low, indicating a conservative approach to debt usage by TXNM Energy, Inc.
Overall, based on these solvency ratios, TXNM Energy, Inc. appears to be in a stable financial position with minimal debt levels and strong financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.23 | 1.48 | 2.67 | 3.55 | 2.84 |
TXNM Energy, Inc.'s interest coverage has shown some fluctuations over the past five years. In 2020, the interest coverage ratio was 2.84, indicating that the company generated sufficient earnings to cover its interest expenses 2.84 times over. By the end of 2021, the interest coverage improved to 3.55, suggesting a better ability to meet interest obligations through operating income.
However, the trend reversed in 2022 with the interest coverage ratio declining to 2.67. This decrease may raise concerns about the company's ability to comfortably cover its interest payments using its operating profits. In 2023, the interest coverage ratio fell further to 1.48, signaling a potentially challenging situation for the company in meeting its interest obligations with its current earnings level.
Although there was a slight improvement in 2024, with the interest coverage ratio increasing to 2.23, it is still below the levels seen in the previous years. Overall, fluctuations in the interest coverage ratio suggest variability in TXNM Energy, Inc.'s ability to service its interest payments over the years, highlighting the importance of monitoring this metric closely for financial health assessment.