MGE Energy Inc (MGEE)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 117,699 | 118,667 | 114,530 | 107,610 | 110,952 | 102,961 | 104,158 | 105,248 | 105,761 | 108,497 | 105,374 | 101,314 | 92,418 | 93,284 | 92,147 | 88,904 | 86,874 | 86,573 | 85,422 | 88,225 |
| Total assets | US$ in thousands | 2,675,460 | 2,590,530 | 2,560,070 | 2,522,200 | 2,517,600 | 2,465,690 | 2,437,230 | 2,377,540 | 2,371,910 | 2,370,730 | 2,302,080 | 2,270,240 | 2,253,650 | 2,195,730 | 2,163,720 | 2,072,700 | 2,081,660 | 2,066,970 | 2,026,090 | 2,003,570 |
| ROA | 4.40% | 4.58% | 4.47% | 4.27% | 4.41% | 4.18% | 4.27% | 4.43% | 4.46% | 4.58% | 4.58% | 4.46% | 4.10% | 4.25% | 4.26% | 4.29% | 4.17% | 4.19% | 4.22% | 4.40% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $117,699K ÷ $2,675,460K
= 4.40%
ROA, a crucial financial ratio for analyzing a company's profitability, indicates how efficiently a company utilizes its assets to generate earnings. For MGE Energy Inc, the ROA has shown a relatively stable trend over the past few quarters, ranging between 4.10% to 4.58%. This consistency suggests that the company has been effectively managing its assets to generate profits.
The ROA of around 4.40% to 4.58% indicates that for every dollar of assets, MGE Energy Inc is generating a profit of approximately 4.40 to 4.58 cents. This level of return on assets is generally considered favorable, as it demonstrates the company's ability to efficiently use its resources to generate earnings.
Overall, the stable and relatively high ROA of MGE Energy Inc indicates that the company is making efficient use of its assets to generate profits, which is a positive sign for investors and stakeholders. However, it's important to continue monitoring this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial performance and stability.