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.