OGE Energy Corporation (OGE)

Solvency ratios

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
Debt-to-assets ratio 0.37 0.37 0.36 0.33 0.34 0.34 0.34 0.31 0.28 0.28 0.28 0.34 0.36 0.37 0.38 0.30 0.33 0.33 0.33 0.31
Debt-to-capital ratio 0.52 0.52 0.52 0.49 0.49 0.49 0.50 0.48 0.45 0.44 0.45 0.51 0.53 0.54 0.55 0.49 0.49 0.49 0.49 0.47
Debt-to-equity ratio 1.08 1.09 1.08 0.96 0.96 0.96 0.99 0.91 0.80 0.80 0.83 1.05 1.11 1.18 1.23 0.97 0.96 0.95 0.98 0.90
Financial leverage ratio 2.96 2.92 2.95 2.91 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

OGE Energy Corporation's solvency ratios reflect its ability to meet its long-term financial obligations. The Debt-to-assets ratio has generally remained stable, hovering around 0.30 to 0.38 over the past few years, indicating that a significant portion of the company's assets are financed by debt.

The Debt-to-capital ratio shows a similar trend, ranging from 0.44 to 0.55 during the same period. This ratio indicates the proportion of the company's capital that is financed through debt. OGE Energy Corporation's debt level, relative to its capital structure, has fluctuated but has generally been within a reasonable range.

The Debt-to-equity ratio reflects the company's reliance on debt financing compared to equity. OGE Energy Corporation's ratio has varied between 0.80 to 1.23, showing fluctuations in the mix of debt and equity in its capital structure. A higher ratio indicates higher financial risk due to more reliance on debt.

The Financial leverage ratio has also fluctuated, ranging from 2.84 to 3.27. This ratio indicates the company's financial leverage and risk of insolvency. OGE Energy Corporation's financial leverage has shown some variability but has generally been within reasonable limits.

Overall, OGE Energy Corporation's solvency ratios suggest a moderate level of leverage and risk, with fluctuations in the mix of debt and equity in its capital structure. Investors and stakeholders should continue to monitor these ratios to assess the company's ability to meet its long-term financial obligations.

Coverage ratios

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
Interest coverage 3.05 2.80 2.94 2.92 3.14 3.34 3.71 3.85 5.72 5.73 5.65 5.96 4.26 4.27 3.91 3.84 -1.12 -1.22 -0.97 -1.05

The interest coverage ratio indicates OGE Energy Corporation's ability to meet its interest obligations with its operating income. Over the period from March 31, 2020, to December 31, 2024, the interest coverage ratio experienced significant fluctuations.

The ratio was negative in the first three quarters of 2020, indicating that the company's operating income was not sufficient to cover its interest expenses during that period, which could be a cause for concern. However, from March 31, 2021, onwards, the interest coverage ratio improved consistently, reaching a peak of 5.96 on March 31, 2022.

From March 31, 2022, to December 31, 2024, the interest coverage ratio gradually declined but remained positive, indicating the company's ability to comfortably cover its interest payments with its operating income. However, the ratio declined to 2.80 on September 30, 2024, before increasing slightly to 3.05 on December 31, 2024.

Overall, the trend in OGE Energy Corporation's interest coverage ratios suggests an improvement in the company's ability to service its debt obligations with its operating income, although there were fluctuations during the period under consideration. It is important for investors and stakeholders to monitor this ratio to ensure the company maintains a healthy level of interest coverage.