TXNM Energy, Inc. (TXNM)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	11,211,700	10,252,600	9,257,380	8,666,880	7,939,850
Total stockholders’ equity	US$ in thousands	2,547,910	2,360,620	2,203,460	2,179,050	2,060,990
Financial leverage ratio		4.40	4.34	4.20	3.98	3.85

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,211,700K ÷ $2,547,910K
= 4.40

The financial leverage ratio for TXNM Energy, Inc. has been gradually increasing over the years, from 3.85 in December 2020 to 4.40 in December 2024. This indicates that the company is relying more on debt to finance its operations and growth over time. A higher financial leverage ratio signifies a higher level of financial risk, as the company has more debt in relation to equity. It is important for stakeholders to monitor this trend closely, as a significantly high ratio may lead to increased vulnerability in times of economic downturn or financial stress. TXNM Energy, Inc. should carefully manage its debt levels to maintain a healthy balance between debt and equity financing to sustain long-term financial stability and growth.