MGE Energy Inc (MGEE)

Solvency ratios

	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
Debt-to-assets ratio	0.27	0.27	0.25	0.26	0.23	0.23	0.24	0.26	0.26	0.26	0.24	0.23	0.23	0.24	0.24	0.25	0.25	0.24	0.24	0.25
Debt-to-capital ratio	0.39	0.38	0.37	0.37	0.35	0.34	0.36	0.37	0.37	0.37	0.36	0.34	0.35	0.35	0.35	0.38	0.38	0.37	0.37	0.37
Debt-to-equity ratio	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	0.61	0.58	0.59	0.59
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

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at MGE Energy Inc's solvency ratios over the past several quarters, we see a relatively stable picture.

The debt-to-assets ratio has been consistent around 0.25 to 0.27, indicating that roughly 25-27% of the company's assets are financed by debt. This suggests that MGE Energy Inc maintains a conservative level of debt in relation to its total assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also remained relatively stable, hovering around 0.37 to 0.39 and 0.58 to 0.63 respectively. These ratios indicate that MGE Energy Inc relies on debt for around 37-39% of its total capital and 58-63% of its total equity. This shows a moderate level of leverage and indicates that the company is not overly reliant on debt to finance its operations.

The financial leverage ratio, which takes into account the company's total assets in relation to its equity, has also shown consistency around 2.30 to 2.35. This suggests that MGE Energy Inc is utilizing leverage efficiently to support its operations and growth without taking on excessive financial risk.

Overall, based on the solvency ratios analyzed, MGE Energy Inc appears to have a prudent and balanced approach to its long-term financial obligations, maintaining a stable and sustainable capital structure over the analyzed period.

Coverage ratios

	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
Interest coverage	—	—	—	—	—	—	—	—	—	—	—	—	—	580.32	288.26	283.85	281.50	567.95	—	—

The interest coverage ratio for MGE Energy Inc fluctuated over the period analyzed. Specifically, the interest coverage ratio was not available for the periods ending December 2023, September 2023, June 2023, March 2023, December 2022, September 2022, June 2022, March 2022, and September 2019. However, for the periods where data was available, the interest coverage ratio showed significant variability, ranging from a low of 283.85 in March 2020 to a high of 580.32 in September 2020.

Overall, the interest coverage ratio for MGE Energy Inc indicates its ability to meet its interest obligations from its operating profits. The variability in the ratio suggests fluctuations in the company's profitability and its ability to cover interest expenses. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial health and stability.