MGE Energy Inc (MGEE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.31 | 0.26 | 0.38 | 0.39 | 0.44 |
| Receivables turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Payables turnover | 0.35 | 0.33 | 0.30 | 0.34 | 0.36 |
| Working capital turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The activity ratios of MGE Energy Inc show some noteworthy trends over the past five years.
1. Inventory turnover has decreased from 0.44 in 2019 to 0.31 in 2023, indicating that the company is selling its inventory less frequently compared to previous years. This could suggest potential issues with managing inventory levels efficiently.
2. Receivables turnover is reported as 0.00 for all years, which could indicate that there may not be significant data available or that the company is not efficiently collecting its accounts receivable.
3. Payables turnover has been relatively stable, ranging from 0.30 in 2021 to 0.36 in 2019. This suggests that the company is maintaining a consistent rate of paying its suppliers over the years.
4. Working capital turnover is also reported as 0.00 for all years, indicating that there may not be enough working capital turnover data available to analyze this particular aspect of the company's operations.
Overall, there are some areas, such as inventory turnover and potentially receivables turnover, where MGE Energy Inc may need to focus on improving efficiency and effectiveness to enhance its operational performance and financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,161.83 | 1,387.29 | 970.84 | 934.55 | 826.48 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 1,046.73 | 1,108.22 | 1,198.59 | 1,080.41 | 1,006.79 |
The analysis of MGE Energy Inc's activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand has shown an increasing trend over the past five years, indicating that MGE Energy Inc is taking longer to sell its inventory. This may suggest inefficient inventory management or potential overstocking of inventory.
2. Days of Sales Outstanding (DSO):
- The data for Days of Sales Outstanding is not available for the given years, which limits our ability to assess MGE Energy Inc's efficiency in collecting accounts receivable. However, a lower DSO value would typically indicate more efficient accounts receivable management.
3. Number of Days of Payables:
- The Number of Days of Payables has fluctuated over the years, with a general trend of variability. A higher number of days indicates that MGE Energy Inc is taking more time to pay its suppliers, which could either be a strategic decision or a sign of financial distress.
Overall, MGE Energy Inc's activity ratios suggest areas that may require further attention, such as inventory management and accounts payable practices, to improve operational efficiency and cash flow management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total asset turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The fixed asset turnover ratio for MGE Energy Inc remained consistently at 0.00 over the past five years, indicating that the company has not effectively utilized its fixed assets to generate sales. This could be due to various reasons such as underutilization of assets or inefficient management of fixed assets.
Similarly, the total asset turnover ratio also remained at 0.00 for the same period, indicating that the company has not efficiently managed its total assets to generate revenue. A low total asset turnover ratio could suggest that MGE Energy Inc may have excess assets on its balance sheet that are not being effectively utilized to drive sales.
Overall, the stagnant and consistently low values of both fixed asset turnover and total asset turnover ratios for MGE Energy Inc raise concerns about the company's asset management efficiency and its ability to generate revenue from its assets. It may be beneficial for the company to review its asset utilization strategies and operational efficiencies to improve these ratios and enhance overall financial performance.