MGE Energy Inc (MGEE)

Financial leverage 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
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
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
Financial leverage ratio		2.35	2.28	2.30	2.30	2.33	2.29	2.31	2.27	2.31	2.31	2.29	2.28	2.31	2.26	2.27	2.38	2.43	2.43	2.43	2.42

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 shown relative stability over the past few quarters, ranging between 2.27 and 2.35. This indicates that the company relies moderately on debt to finance its operations and investments, with a higher ratio suggesting a higher level of debt in relation to equity.

The ratio fluctuated slightly but remained close to the average level of 2.31 during this period. A consistent ratio suggests that the company has maintained a relatively steady balance between debt and equity in its capital structure.

It is important for investors to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and maintain a healthy financial position.