OGE Energy Corporation (OGE)

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 0.34 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 0.29 0.29 0.29 0.27
Debt-to-capital ratio 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 0.44 0.43 0.44 0.42
Debt-to-equity ratio 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 0.77 0.76 0.80 0.73
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

Oge Energy Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Looking at the debt-to-assets ratio, we observe a fairly stable trend over the past eight quarters, ranging between 0.36 and 0.39. This indicates that, on average, around 36-39% of the company's total assets are financed through debt.

Similarly, the debt-to-capital ratio also demonstrates consistency, with values hovering around 0.51-0.53. This ratio reflects the proportion of the company's capital structure that is funded by debt, showing that debt accounts for approximately 51-53% of Oge Energy Corp.'s total capital.

The debt-to-equity ratio, on the other hand, exhibits more variability, fluctuating between 1.02 and 1.23. This suggests that the company's reliance on debt relative to its equity has been changing, with values exceeding 1 indicating that the company has more debt than equity in its capital structure.

Lastly, the financial leverage ratio provides a broader picture of the company's leverage levels, with figures ranging from 2.81 to 3.07 over the analyzed quarters. This ratio indicates the extent to which the company's assets are funded through debt, highlighting Oge Energy Corp.'s leverage position across the periods.

Overall, based on the solvency ratios analyzed, Oge Energy Corp. appears to have a consistent reliance on debt to finance its assets and operations, with varying levels of leverage and debt in its capital structure. Investors and stakeholders may consider these ratios to assess the company's solvency and evaluate the associated risks.

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 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 4.09 4.01 3.78 3.80

Oge Energy Corp.'s interest coverage ratio has been showing a decreasing trend over the eight quarters provided. The ratio has decreased from 4.37 in Q1 2022 to 2.94 in Q4 2023. This indicates that the company's ability to cover its interest expenses with operating income has weakened over time.

While a higher interest coverage ratio is generally viewed as a positive sign of a company's financial health, the declining trend in Oge Energy Corp.'s interest coverage raises concerns about its ability to meet its interest obligations. It suggests that the company may be facing challenges in generating sufficient earnings to cover its interest expenses.

Investors and creditors may view this downward trend negatively as it indicates potential financial strain for Oge Energy Corp. It is essential for the company to closely monitor and address the factors contributing to this decline in interest coverage to ensure its financial stability and solvency in the long term.