MGE Energy Inc (MGEE)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	763,697	715,268	716,461	717,646	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
Total stockholders’ equity	US$ in thousands	1,230,140	1,195,260	1,167,630	1,158,780	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
Debt-to-equity ratio		0.62	0.60	0.61	0.62	0.63	0.61	0.59	0.59	0.54	0.52	0.56	0.58	0.60	0.60	0.55	0.52	0.53	0.53	0.55	0.60

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $763,697K ÷ $1,230,140K
= 0.62

The debt-to-equity ratio of MGE Energy Inc has shown a fluctuating trend over the past few years, ranging from 0.52 to 0.63. Generally, a lower debt-to-equity ratio is considered favorable as it indicates lower financial risk and reliance on debt financing.

From March 31, 2020, to March 31, 2022, the ratio decreased steadily from 0.60 to 0.58, suggesting a reduction in debt relative to equity during this period. However, from June 30, 2022, to December 31, 2024, the ratio fluctuated within the range of 0.52 to 0.63, indicating potentially varying levels of leverage and equity in the company's capital structure.

The debt-to-equity ratio provides insights into the company's capital structure and financial health, highlighting the proportion of debt used to finance its operations compared to equity. Further analysis of MGE Energy Inc's financial performance and capital management strategies would be necessary to fully understand the implications of these fluctuations in the debt-to-equity ratio.