MGE Energy Inc (MGEE)

Financial leverage 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
Total assets	US$ in thousands	2,827,960	2,749,320	2,724,640	2,674,080	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
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
Financial leverage ratio		2.30	2.30	2.33	2.31	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

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 relatively stable trend over the analyzed period from March 31, 2020, to December 31, 2024. The ratio fluctuated between 2.26 and 2.35, with an average value of approximately 2.30. This indicates that the company's level of financial leverage, or the proportion of debt in its capital structure, has remained within a narrow range.

A financial leverage ratio of around 2.30 suggests that MGE Energy Inc relies moderately on debt financing to support its operations and growth initiatives. A ratio of 2.30 implies that for every dollar of equity, the company has around $2.30 of debt. This level of leverage may be considered moderate and indicates a balanced approach to capital structure management.

Overall, the stability of the financial leverage ratio for MGE Energy Inc indicates a consistent approach to managing its debt levels over the analyzed period. Investors and stakeholders may view this stable trend positively, as it suggests a prudent and sustainable capital structure strategy.