MGE Energy Inc (MGEE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 146,385 | 137,743 | 117,294 | 109,997 | 110,910 |
| Total assets | US$ in thousands | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 | 2,081,660 |
| Operating ROA | 5.47% | 5.47% | 4.95% | 4.88% | 5.33% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $146,385K ÷ $2,675,460K
= 5.47%
MGE Energy Inc's operating return on assets (operating ROA) has shown a relatively stable trend over the past five years. The operating ROA was 5.47% in both 2023 and 2022, indicating consistent operational efficiency in generating earnings from its assets during these years. This suggests that the company has been effectively utilizing its assets to generate operating income.
In 2021, the operating ROA decreased slightly to 4.95% from the previous year. This may indicate a slight decrease in operational efficiency in generating income from assets compared to 2020. However, it is worth noting that the operating ROA still remained above 4%, indicating that the company was generally efficient in utilizing its assets.
The operating ROA was 4.88% in 2020, showing a marginal decline compared to the prior year. Despite this slight decrease, the company continued to generate income from its assets, albeit at a slightly lower rate.
In 2019, the operating ROA was 5.33%, which was higher compared to the following years. This implies that the company was more efficient in utilizing its assets to generate operating income in 2019.
Overall, MGE Energy Inc's operating ROA performance over the past five years has indicated relatively consistent operational efficiency in generating income from its assets, with minor fluctuations seen in some years.