TXNM Energy, Inc. (TXNM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.43 | 0.40 | 0.41 | 0.41 | 0.41 | 0.39 | 0.28 | 0.34 | 0.32 | 0.32 | 0.33 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.64 | 0.63 | 0.63 | 0.62 | 0.61 | 0.60 | 0.52 | 0.57 | 0.59 | 0.59 | 0.60 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.77 | 1.68 | 1.71 | 1.62 | 1.58 | 1.53 | 1.09 | 1.33 | 1.42 | 1.44 | 1.52 |
| Financial leverage ratio | 4.40 | 4.39 | 4.38 | 4.33 | 4.34 | 4.47 | 4.23 | 4.21 | 4.37 | 4.10 | 4.18 | 4.13 | 4.00 | 3.85 | 3.89 | 3.91 | 3.87 | 4.37 | 4.46 | 4.53 |
TXNM Energy, Inc.'s solvency ratios provide insights into the company's ability to meet its long-term obligations. The Debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, has shown a decrease from 0.33 in March 2020 to 0.00 by December 2022 and remained at this level until December 2024. This suggests that the company has significantly reduced its reliance on debt to finance its assets over the years.
The Debt-to-capital ratio, reflecting the percentage of the company's capital structure funded by debt, followed a similar trend, declining from 0.60 in March 2020 to 0.00 by December 2022 and maintaining this level through December 2024. This further confirms the company's concerted effort to reduce its debt exposure in relation to its total capital.
The Debt-to-equity ratio, which signifies the extent to which the company's operations are funded by shareholder equity versus debt, decreased from 1.52 in March 2020 to 0.00 by December 2022 and persisted at this level until December 2024. This indicates a shift towards a more equity-funded capital structure and reduced financial risk associated with excessive debt.
The Financial leverage ratio, which measures the company's overall debt level in relation to its equity, varied between 3.85 and 4.53 during the period from March 2020 to September 2022 before decreasing to 4.37 by December 2022 and stabilizing through December 2024. This suggests a moderation in the company's financial leverage and potentially a more sustainable capital structure over the years.
Overall, the solvency ratios illustrate TXNM Energy, Inc.'s proactive approach to improving its financial health by reducing debt levels and enhancing the equity component of its capital structure, which may contribute to increased financial stability and resilience in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.20 | 1.78 | 1.25 | 1.24 | 1.46 | 2.09 | 2.88 | 3.10 | 3.13 | 3.31 | 3.37 | 3.43 | 3.18 | 3.13 | 3.10 | 3.07 | 2.69 | 2.84 | 2.61 | 1.13 |
TXNM Energy, Inc.'s interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
Looking at the data provided, the interest coverage ratio for TXNM Energy, Inc. has generally been increasing from 1.13 in March 31, 2020, to a peak of 3.43 in March 31, 2022. This upward trend suggests that the company's operating income has been able to cover its interest payments more comfortably over time.
However, there was a slight decline in the interest coverage ratio in the following quarters, dropping to 2.09 in September 30, 2023, and further to 1.46 in December 31, 2023. These decreases may indicate potential financial strain or a decrease in operating income relative to interest expenses during those periods.
It's worth noting that the interest coverage ratio improved in the subsequent quarters, reaching 2.20 in December 31, 2024. Overall, the trend in the interest coverage ratio for TXNM Energy, Inc. shows some volatility but generally indicates an improving ability to meet interest obligations with operating income.