MGE Energy Inc (MGEE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,230,140 | 1,140,070 | 1,081,670 | 1,027,470 | 976,000 |
| ROE | 9.80% | 10.32% | 10.26% | 10.29% | 9.47% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $120,569K ÷ $1,230,140K
= 9.80%
Based on the provided data, MGE Energy Inc's return on equity (ROE) has shown a relatively stable trend over the past five years. The ROE increased from 9.47% as of December 31, 2020, to 10.32% as of December 31, 2023, reflecting an improvement in the company's ability to generate profit from shareholders' equity.
However, there was a slight decline in ROE to 9.80% as of December 31, 2024. This decrease could indicate a decrease in the company's profitability relative to its equity base, which may be a cause for further analysis to determine the underlying reasons.
Overall, MGE Energy Inc's ROE performance appears satisfactory, with some fluctuations observed over the five-year period. It is essential for stakeholders to monitor these trends to assess the company's long-term financial health and efficiency in utilizing shareholders' equity to generate returns.