MGE Energy Inc (MGEE)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	718,822	690,028	651,654	652,804	585,246	561,566	592,689	613,105	614,211	615,311	556,431	518,211	519,303	520,383	521,456	522,614	523,741	490,159	491,217	492,283
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
Debt-to-assets ratio		0.27	0.27	0.25	0.26	0.23	0.23	0.24	0.26	0.26	0.26	0.24	0.23	0.23	0.24	0.24	0.25	0.25	0.24	0.24	0.25

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $718,822K ÷ $2,675,460K
= 0.27

The debt-to-assets ratio of MGE Energy Inc has remained relatively stable over the past few years, fluctuating between 0.23 and 0.27. This ratio indicates that, on average, approximately 25% to 27% of the company's assets are financed through debt. A lower debt-to-assets ratio suggests that the company has a lower level of financial leverage and may be considered less risky by investors and creditors.

Overall, the consistency of this ratio within the range of 0.23 to 0.27 demonstrates that MGE Energy Inc has maintained a prudent balance between debt and assets in its capital structure. This stability is a positive sign of the company's financial health and ability to manage its debt obligations effectively.