MGE Energy Inc (MGEE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 238,197 | 243,480 | 199,371 | 209,519 | 181,641 |
| Total current liabilities | US$ in thousands | 157,156 | 225,062 | 117,847 | 190,926 | 128,820 |
| Current ratio | 1.52 | 1.08 | 1.69 | 1.10 | 1.41 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $238,197K ÷ $157,156K
= 1.52
The current ratio of MGE Energy Inc has fluctuated over the past five years. In 2023, the current ratio improved to 1.52 from 1.08 in 2022. This indicates that the company's current assets are 1.52 times greater than its current liabilities, suggesting a stronger ability to cover short-term obligations. In 2021, the current ratio was at its highest point of 1.69, indicating a healthy liquidity position. However, in 2020 and 2019, the current ratio was lower at 1.10 and 1.41, respectively, which may suggest potential liquidity issues. Overall, the current ratio trend shows a mix of strengths and weaknesses in MGE Energy Inc's short-term liquidity position over the past five years.