ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PNM Resources's annualizedNet Income for the quarter that ended in Dec. 2023 was $-200 Mil.
PNM Resources's average Total Assets over the quarter that ended in Dec. 2023 was $10,152 Mil. Therefore, PNM Resources's annualized ROA % for the quarter that ended in Dec. 2023 was -1.97%.
The historical rank and industry rank for PNM Resources's ROA % or its related term are showing as below:
PNM'
s ROA % Range Over the Past 10 Years
Min: 0.27 Med: 1.58 Max: 2.36
Current: 0.91
During the past 13 years, PNM Resources's highest ROA % was 2.36%. The lowest was 0.27%. And the median was 1.58%.
PNM's ROA % is ranked worse than 78.65% of 520
companies
in the Utilities - Regulated industry
Industry Median: 2.945
vs PNM: 0.91
PNM Resources ROA % Historical Data
The historical data trend for PNM Resources's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, PNM Resources's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PNM Resources ROA % Distribution
For the Utilities - Regulated industry and Utilities sector, PNM Resources's ROA % distribution charts can be found below:
* The bar in red indicates where PNM Resources's ROA % falls into.
PNM Resources ROA % Calculation
PNM Resources's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
PNM Resources (NYSE:PNM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
PNM Resources ROA % Related Terms
Thank you for viewing the detailed overview of PNM Resources's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
PNM Resources (PNM Resources) Business Description
PNM Resources Inc, or PNMR, is a holding company that owns regulated utilities companies providing electricity and electric services. PNMR segments its operations by its two subsidiaries, PNM and TNMP. PNM provides electric generation, transmission, and distribution services mainly to areas of New Mexico. While PNM uses a variety of fuel sources across its power plant portfolio, its coal and gas-fueled sites produce most of the energy. TNMP owns and operates transmission and distribution services primarily in small to medium-sized communities in Texas. Both subsidiaries generate revenue for PNMR through the sale of electricity and transmission service fees fairly evenly split between residential and commercial customers. PNM generates the vast majority of PNMR's total revenue.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PNM has been successfully added to your 