MGE Energy Inc (MGEE)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,140,070	1,135,250	1,112,580	1,098,370	1,081,670	1,075,200	1,056,060	1,048,150	1,027,470	1,028,280	1,007,300	997,711	976,000	973,584	955,171	869,492	855,676	851,234	832,797	828,950
ROE		10.32%	10.45%	10.29%	9.80%	10.26%	9.58%	9.86%	10.04%	10.29%	10.55%	10.46%	10.15%	9.47%	9.58%	9.65%	10.22%	10.15%	10.17%	10.26%	10.64%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $117,699K ÷ $1,140,070K
= 10.32%

ROE is a key financial ratio that measures a company's ability to generate profits from shareholders' equity. MGE Energy Inc's ROE has been relatively stable over the past eight quarters, ranging from 9.47% to 10.55%. The average ROE over this period is approximately 10.12%.

The ROE indicates that MGE Energy Inc has been consistently generating returns for its shareholders above the industry average. The company's ability to maintain ROE above 10% signifies efficient utilization of equity capital to generate profits.

However, the slight fluctuations in ROE over the quarters suggest potential variability in the company's profitability and efficiency in generating returns. Investors should continue monitoring MGE Energy Inc's ROE to assess its long-term financial performance and sustainability.