OGE Energy Corporation (OGE)

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	12,790,700	12,743,200	12,604,600	12,790,300	12,544,700	12,604,000	12,838,000	13,093,600	12,606,400	12,177,500	11,899,500	11,788,700	10,718,800	10,497,600	10,439,100	10,370,900	11,024,300	11,083,700	10,886,200	10,761,600
Total stockholders’ equity	US$ in thousands	4,511,600	4,540,700	4,379,100	4,370,000	4,413,400	4,440,700	4,256,900	4,262,700	4,056,300	3,814,900	3,640,800	3,605,500	3,631,800	3,660,700	3,564,200	3,552,700	4,139,500	4,186,200	4,007,200	3,976,200
Financial leverage ratio		2.84	2.81	2.88	2.93	2.84	2.84	3.02	3.07	3.11	3.19	3.27	3.27	2.95	2.87	2.93	2.92	2.66	2.65	2.72	2.71

December 31, 2023 calculation

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

The financial leverage ratio of Oge Energy Corp. has shown relative stability over the past 8 quarters, ranging from 2.81 to 3.07. Generally, a higher financial leverage ratio indicates that a company relies more on debt to finance its operations and investments, which can amplify returns but also increase financial risk.

The company's financial leverage ratio peaked in Q2 2022 at 3.07 and has since gradually declined, with the most recent value at 2.84 in Q4 2023. This decreasing trend suggests that Oge Energy Corp. may be reducing its reliance on debt to fund its activities, which could be a positive sign for investors concerned about the company's financial risk profile.

Overall, Oge Energy Corp.'s financial leverage ratio demonstrates a moderate level of leverage over the periods examined, indicating a balanced approach to capital structure management. However, it's important for investors to continue monitoring this ratio along with other financial metrics to assess the company's overall financial health and risk profile.