MGE Energy Inc (MGEE)

Debt-to-capital 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 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
Debt-to-capital ratio		0.39	0.38	0.37	0.37	0.35	0.34	0.36	0.37	0.37	0.37	0.36	0.34	0.35	0.35	0.35	0.38	0.38	0.37	0.37	0.37

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $718,822K ÷ ($718,822K + $1,140,070K)
= 0.39

The debt-to-capital ratio of MGE Energy Inc has shown some fluctuations over the past five years, ranging from 0.34 to 0.39. This ratio indicates the proportion of a company's capital that is contributed by debt compared to equity. A higher ratio suggests that the company relies more on debt to finance its operations, while a lower ratio indicates a stronger reliance on equity.

From the data provided, it seems that MGE Energy Inc has maintained a relatively stable debt-to-capital ratio over the period, hovering around 0.35 to 0.39. This suggests a moderate level of debt usage in the company's capital structure, which can be beneficial for financial flexibility and tax advantages.

Overall, the trend in the debt-to-capital ratio of MGE Energy Inc indicates a balanced approach to capital structure management, with a mix of debt and equity financing to support its business operations and growth initiatives.