OGE Energy Corporation (OGE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,716,000 | 12,790,700 | 12,544,700 | 12,606,400 | 10,718,800 |
| Total stockholders’ equity | US$ in thousands | 4,640,900 | 4,511,600 | 4,413,400 | 4,056,300 | 3,631,800 |
| Financial leverage ratio | 2.96 | 2.84 | 2.84 | 3.11 | 2.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,716,000K ÷ $4,640,900K
= 2.96
The financial leverage ratio of OGE Energy Corporation has shown a fluctuating trend over the past five years, ranging from 2.84 to 3.11. This ratio measures the extent to which the company relies on debt financing as opposed to equity to fund its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
In 2021, the financial leverage ratio increased to 3.11, indicating a higher reliance on debt during that period. However, in 2022 and 2023, the ratio decreased to 2.84, suggesting a more balanced mix of debt and equity financing. By the end of 2024, the ratio slightly increased to 2.96, showing a slight uptick in the company's leverage compared to the previous year.
Overall, OGE Energy Corporation's financial leverage ratio has fluctuated within a relatively narrow range, indicating a moderate level of leverage in its capital structure. It is essential for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing for sustainable growth and financial stability.
Peer comparison
Dec 31, 2024