MGE Energy Inc (MGEE)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 763,697 | 718,822 | 585,246 | 614,211 | 519,303 |
| Total assets | US$ in thousands | 2,827,960 | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 |
| Debt-to-assets ratio | 0.27 | 0.27 | 0.23 | 0.26 | 0.23 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $763,697K ÷ $2,827,960K
= 0.27
The debt-to-assets ratio of MGE Energy Inc has shown a relatively stable trend over the past five years. It stood at 0.23 as of December 31, 2020, and increased slightly to 0.26 by the end of 2021. Subsequently, it reverted back to 0.23 by the close of 2022. However, there was a moderate uptick to 0.27 at the end of both 2023 and 2024.
A debt-to-assets ratio of less than 1 indicates that MGE Energy Inc has more assets than debt, suggesting a relatively low level of financial risk. The consistent ratio around the 0.23-0.27 range denotes a prudent capital structure where the company's reliance on debt to fund its operations remains relatively modest. Investors and creditors generally view a stable or decreasing debt-to-assets ratio favorably as it signifies a healthier balance between debt and asset levels.