MGE Energy Inc (MGEE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,827,960 | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 |
| Total stockholders’ equity | US$ in thousands | 1,230,140 | 1,140,070 | 1,081,670 | 1,027,470 | 976,000 |
| Financial leverage ratio | 2.30 | 2.35 | 2.33 | 2.31 | 2.31 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,827,960K ÷ $1,230,140K
= 2.30
The financial leverage ratio of MGE Energy Inc has shown a slight upward trend over the past few years, increasing from 2.31 in 2020 to 2.30 in 2024. This indicates that the company's reliance on debt financing has increased marginally during this period. However, the overall level of leverage remains relatively stable, with the ratio fluctuating within a narrow range between 2.30 and 2.35. It is essential for the company to carefully manage its debt levels to ensure financial stability and meet its obligations efficiently.