MGE Energy Inc (MGEE)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 120,569 | 117,699 | 110,952 | 105,761 | 92,418 |
| Total assets | US$ in thousands | 2,827,960 | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 |
| ROA | 4.26% | 4.40% | 4.41% | 4.46% | 4.10% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $120,569K ÷ $2,827,960K
= 4.26%
Based on the provided data, MGE Energy Inc's return on assets (ROA) has shown a generally stable trend over the past five years. The ROA increased from 4.10% as of December 31, 2020, to 4.46% as of December 31, 2021, reflecting an improvement in the company's ability to generate profits from its assets during that period.
However, in the subsequent years, the ROA experienced minor fluctuations, with values of 4.41% as of December 31, 2022, 4.40% as of December 31, 2023, and 4.26% as of December 31, 2024. These fluctuations suggest some variability in the company's profitability relative to its asset base.
Overall, MGE Energy Inc's ROA indicates that, on average, the company has been able to generate approximately 4.33% return on its assets over the past five years. While the slight fluctuations in ROA may be worth monitoring, the general stability in this ratio suggests that the company has been able to effectively utilize its assets to generate profits.