MGE Energy Inc (MGEE)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.81 | 1.52 | 1.08 | 1.69 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $227,265K ÷ $125,563K
= 1.81
The current ratio of MGE Energy Inc has shown fluctuations over the past five years.
In December 2020, the current ratio was 1.10, indicating that the company had $1.10 in current assets for every $1 of current liabilities, which may have suggested a potential liquidity concern.
By December 2021, the current ratio improved to 1.69, reflecting a healthier position with a significant increase in current assets compared to liabilities.
However, in December 2022, the current ratio decreased to 1.08, falling below the industry average, which could signal a potential liquidity strain.
In December 2023, the current ratio increased to 1.52, indicating a better liquidity position compared to the previous year.
Lastly, the current ratio further improved to 1.81 by December 2024, showing that MGE Energy Inc had $1.81 in current assets to cover each dollar of current liabilities, suggesting a strong liquidity position.
Overall, the current ratio trend for MGE Energy Inc demonstrates variability, with fluctuations that could signal changes in the company's liquidity position over the years.