MGE Energy Inc (MGEE)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 676,944 | 670,181 | 662,229 | 664,514 | 690,431 | 715,612 | 718,484 | 722,834 | 714,519 | 686,752 | 669,225 | 647,607 | 606,584 | 581,027 | 570,365 | 556,675 | 538,633 | 543,065 | 546,052 | 551,159 |
| Total current assets | US$ in thousands | 227,265 | 210,325 | 222,230 | 221,745 | 238,197 | 216,411 | 222,531 | 223,249 | 243,480 | 199,847 | 194,640 | 194,433 | 199,371 | 234,085 | 191,393 | 201,511 | 209,519 | 199,933 | 217,750 | 162,193 |
| Total current liabilities | US$ in thousands | 125,563 | 149,605 | 168,077 | 139,655 | 157,156 | 122,838 | 159,399 | 146,006 | 225,062 | 194,793 | 160,707 | 98,104 | 117,847 | 123,543 | 145,689 | 183,798 | 190,926 | 115,480 | 109,623 | 111,006 |
| Working capital turnover | 6.66 | 11.04 | 12.23 | 8.09 | 8.52 | 7.65 | 11.38 | 9.36 | 38.79 | 135.88 | 19.72 | 6.72 | 7.44 | 5.26 | 12.48 | 31.43 | 28.97 | 6.43 | 5.05 | 10.77 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $676,944K ÷ ($227,265K – $125,563K)
= 6.66
MGE Energy Inc's working capital turnover has shown fluctuations over the reporting periods. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2020, there was a significant increase in the working capital turnover, reaching a peak of 31.43 at the end of the first quarter of 2021. This suggests that the company was effectively utilizing its working capital to generate sales during this period.
However, starting from June 30, 2021, the working capital turnover ratio decreased and continued to fluctuate between 5.05 and 135.88 until the end of December 31, 2024. Such fluctuations may indicate changes in the company's operational efficiency and management of working capital during these periods.
Overall, it is essential for MGE Energy Inc to closely monitor its working capital turnover ratio to ensure optimal utilization of its working capital resources to support its sales activities effectively.