MGE Energy Inc (MGEE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,675,460 | 2,517,600 | 2,371,910 | 2,253,650 | 2,081,660 |
| Total stockholders’ equity | US$ in thousands | 1,140,070 | 1,081,670 | 1,027,470 | 976,000 | 855,676 |
| Financial leverage ratio | 2.35 | 2.33 | 2.31 | 2.31 | 2.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,675,460K ÷ $1,140,070K
= 2.35
The financial leverage ratio of MGE Energy Inc has been relatively stable over the past five years, ranging between 2.31 and 2.43. A financial leverage ratio of 2.35 as of December 31, 2023, indicates that the company is using debt financing to support its assets by approximately 2.35 times the amount of its equity. This suggests that MGE Energy Inc relies moderately on debt to fund its operations and investments. It is important to monitor changes in the financial leverage ratio over time to assess the company's risk and financial stability.