OGE Energy Corporation (OGE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	12,790,700	12,544,700	12,606,400	10,718,800	11,024,300
Total stockholders’ equity	US$ in thousands	4,511,600	4,413,400	4,056,300	3,631,800	4,139,500
Financial leverage ratio		2.84	2.84	3.11	2.95	2.66

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,790,700K ÷ $4,511,600K
= 2.84

Based on the financial leverage ratio data provided for Oge Energy Corp. over the past five years, we observe fluctuations in the company's leverage position. The financial leverage ratio measures the extent to which the company relies on debt to finance its operations and investments.

In 2023 and 2022, Oge Energy Corp. maintained a consistent financial leverage ratio of 2.84, indicating a stable level of debt utilization relative to equity during those years. This suggests that the company's financial structure remained relatively steady, with a moderate reliance on debt funding.

However, in 2021, the financial leverage ratio increased to 3.11, signaling a higher proportion of debt in the company's capital structure compared to the previous year. This could suggest a strategic decision to take on more debt, potentially for growth opportunities or other purposes.

In 2020, the financial leverage ratio decreased to 2.95 from the previous year, indicating a slight reduction in the company's debt relative to equity. This could indicate a deleveraging strategy or a shift towards a more conservative financial structure.

In 2019, the financial leverage ratio was at 2.66, suggesting a lower reliance on debt compared to the subsequent years. This may indicate a period of financial prudence or a conservative approach to leverage during that year.

Overall, the fluctuation in Oge Energy Corp.'s financial leverage ratio over the past five years reflects varying levels of debt utilization and capital structure management, highlighting the dynamic nature of the company's financing decisions and strategic objectives. It is important for stakeholders to closely monitor these ratios to assess the company's risk profile and financial health.