MGE Energy Inc (MGEE)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.32 | 0.29 | 0.29 | 0.29 | 0.26 | 0.24 | 0.31 | 0.45 | 0.38 | 0.40 | 0.44 | 0.51 | 0.39 | 0.37 | 0.41 | 0.47 | 0.46 | 0.05 | 0.05 | 0.04 |
| Receivables turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.54 |
| Payables turnover | 0.35 | 0.40 | 0.54 | 0.52 | 0.33 | 0.30 | 0.21 | 0.43 | 0.30 | 0.35 | 0.43 | 0.37 | 0.34 | 0.33 | 0.46 | 0.49 | 0.38 | 0.06 | 0.05 | 0.03 |
| Working capital turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.10 |
MGE Energy Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.
1. Inventory turnover: The inventory turnover ratio for MGE Energy Inc has fluctuated over the periods, averaging around 0.35. This indicates that the company is selling and replenishing its inventory approximately 0.35 times a year. The lower turnover ratio suggests that the company may be carrying excess inventory or facing challenges in selling its products quickly.
2. Receivables turnover: The data shows that MGE Energy Inc had a receivables turnover of 0.00 consistently across all periods except for the last quarter of 2019. A receivables turnover ratio of zero could imply potential issues such as customers not paying their bills promptly, leading to a buildup of accounts receivable.
3. Payables turnover: MGE Energy Inc's payables turnover ratio has varied but averaged around 0.35. This suggests that the company is taking approximately 0.35 times a year to pay off its suppliers. A higher ratio may indicate that the company is taking longer to pay its bills, which could impact supplier relationships.
4. Working capital turnover: The working capital turnover ratio for MGE Energy Inc has been consistently at 0.00, except for the last quarter of 2019 when it was 1.10. This implies that the company is not effectively utilizing its working capital to generate sales revenue. A higher ratio is generally preferred as it indicates that the company is efficiently using its working capital to generate sales.
In conclusion, MGE Energy Inc may need to focus on improving its inventory management, addressing receivables collection issues, and optimizing its payables payment strategy to enhance overall efficiency and performance.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,156.76 | 1,238.49 | 1,271.05 | 1,252.02 | 1,387.29 | 1,525.90 | 1,170.78 | 813.34 | 970.84 | 905.81 | 833.94 | 714.58 | 934.55 | 980.24 | 898.12 | 773.05 | 786.00 | 7,497.81 | 7,796.02 | 9,817.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 236.25 |
| Number of days of payables | days | 1,042.17 | 916.57 | 682.03 | 698.19 | 1,108.22 | 1,218.90 | 1,712.39 | 848.03 | 1,198.59 | 1,029.58 | 844.15 | 994.51 | 1,080.41 | 1,111.76 | 793.24 | 743.90 | 957.47 | 6,144.40 | 7,868.06 | 12,274.95 |
The activity ratios for MGE Energy Inc, focusing on days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables, reveal important insights into the company's operational efficiency and liquidity management.
1. Days of Inventory on Hand (DOH): The trend in DOH indicates how long on average the company holds inventory before selling it. In recent periods, MGE Energy Inc has shown fluctuations in its DOH, with the number of days ranging from as low as 714.58 days to as high as 1,525.90 days. The significant variation in DOH may suggest inconsistencies in inventory management or changes in demand patterns affecting inventory turnover rates.
2. Days of Sales Outstanding (DSO): The absence of data for DSO for most periods implies that the company may not track this metric or could have data reporting challenges in this area. The lack of insight into DSO limits our ability to evaluate the efficiency of MGE Energy Inc in collecting accounts receivable promptly.
3. Number of Days of Payables: MGE Energy Inc's number of days of payables showcases the average number of days the company takes to pay its supplier invoices. The company has displayed fluctuations in this metric, with figures fluctuating between as low as 682.03 days to as high as 1,712.39 days. The inconsistencies in the number of days of payables could reflect changes in the company's payment terms with suppliers or challenges in managing working capital efficiently.
Overall, MGE Energy Inc's activity ratios highlight areas that may require further review and potential improvement to enhance operational effectiveness and optimize cash flow management.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 |
| Total asset turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 |
MGE Energy Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have been consistently low and stagnant over the past few years. Both ratios have remained at 0.00 for each quarter, except for a slight increase to 0.08 for fixed asset turnover in the last quarter of 2019.
The fixed asset turnover ratio indicates how effectively the company is utilizing its fixed assets to generate sales. The consistently low ratio suggests that MGE Energy Inc may not be efficiently utilizing its fixed assets to generate revenue.
Similarly, the total asset turnover ratio, which reflects how well the company is using all its assets to generate sales, is also stagnant at 0.00. This implies that the company is not efficiently utilizing its total assets to generate revenue.
Overall, the stagnant and extremely low values of both the fixed asset turnover and total asset turnover ratios indicate a potential inefficiency in asset utilization by MGE Energy Inc over the analyzed period.