MGE Energy Inc (MGEE)
Working capital 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 current assets | US$ in thousands | 227,265 | 238,197 | 243,480 | 199,371 | 209,519 |
| Total current liabilities | US$ in thousands | 125,563 | 157,156 | 225,062 | 117,847 | 190,926 |
| Working capital turnover | 6.66 | 8.52 | 38.79 | 7.44 | 28.97 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $676,944K ÷ ($227,265K – $125,563K)
= 6.66
MGE Energy Inc's working capital turnover has fluctuated over the past five years, indicating varying efficiency in managing its working capital. The ratio was highest at 38.79 on December 31, 2022, suggesting that the company generated $38.79 in revenue for every dollar of working capital invested during that period.
However, the ratio significantly reduced to 6.66 on December 31, 2024, signaling a decline in efficiency in utilizing working capital to generate sales revenue. This may imply potential issues with managing current assets and liabilities effectively.
Overall, the trend in MGE Energy Inc's working capital turnover highlights the importance of closely monitoring working capital efficiency to ensure optimal utilization of resources and sustainable business operations.