MGE Energy Inc (MGEE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 117,699 | 110,952 | 105,761 | 92,418 | 86,874 |
| Total assets | US$ in thousands | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 | 2,081,660 |
| ROA | 4.40% | 4.41% | 4.46% | 4.10% | 4.17% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $117,699K ÷ $2,675,460K
= 4.40%
MGE Energy Inc's return on assets (ROA) has shown relatively consistent performance over the past five years. The ROA has ranged from 4.10% to 4.46%, with the most recent figure for 2023 standing at 4.40%. This indicates that the company is generating approximately 4% to 4.5% return on its total assets annually. Although there have been slight fluctuations in ROA, the overall trend suggests that MGE Energy Inc has been effectively utilizing its assets to generate profits. It is important for investors and stakeholders to monitor ROA as it provides insight into the company's efficiency in generating profits relative to its asset base.