MGE Energy Inc (MGEE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 146,262 | 146,385 | 137,743 | 117,294 | 109,997 |
| Total assets | US$ in thousands | 2,827,960 | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 |
| Operating ROA | 5.17% | 5.47% | 5.47% | 4.95% | 4.88% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $146,262K ÷ $2,827,960K
= 5.17%
MGE Energy Inc's operating return on assets (ROA) has shown an upward trend over the period from December 31, 2020, to December 31, 2022, increasing from 4.88% to 5.47%. This indicates the company's ability to generate operating profits relative to its total assets improved during this time frame. However, there was a slight decrease in operating ROA to 5.17% by December 31, 2024. This slight decline may warrant further investigation to understand the underlying factors affecting the profitability of the company's operations in the most recent period. Overall, the company has demonstrated a relatively consistent performance in utilizing its assets to generate operating income over the years covered in the analysis.