MGE Energy Inc (MGEE)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 676,944 | 690,431 | 714,519 | 606,584 | 538,633 |
| Total assets | US$ in thousands | 2,827,960 | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 |
| Total asset turnover | 0.24 | 0.26 | 0.28 | 0.26 | 0.24 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $676,944K ÷ $2,827,960K
= 0.24
Based on the data provided, MGE Energy Inc's total asset turnover has shown a fluctuating trend over the five-year period from 2020 to 2024. The total asset turnover ratio measures the efficiency with which the company generates revenue from its assets.
In 2020, the company had a total asset turnover ratio of 0.24, indicating that for every dollar of assets the company had, it generated $0.24 in revenue. This ratio improved in 2021 to 0.26, suggesting a slight increase in the efficiency of asset utilization to generate revenue.
By 2022, MGE Energy Inc's total asset turnover ratio further increased to 0.28, reflecting an improvement in the company's ability to generate revenue from its assets. However, the ratio dipped back to 0.26 in 2023, indicating a slight decline in asset efficiency compared to the previous year.
In 2024, the total asset turnover ratio decreased to 0.24, reverting to the level observed in 2020. This decline suggests that the company may not be as effective in generating revenue from its assets as it was in the prior year.
Overall, MGE Energy Inc's total asset turnover ratio has shown variability, with fluctuations in asset efficiency and revenue generation over the five-year period. It would be essential for the company to monitor and possibly improve its asset utilization to enhance overall operational efficiency and profitability.