WEC Energy Group Inc (WEC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.82 | 3.74 | 3.67 | 3.56 | 3.53 |
WEC Energy Group Inc demonstrates strong solvency based on its solvency ratios. The Debt-to-assets ratio, which indicates the proportion of a company's assets financed by debt, shows a consistent and low level of 0.00 across the years from 2020 to 2024. This implies that the company has minimal reliance on debt to fund its assets.
Similarly, the Debt-to-capital ratio, which measures the percentage of a company's capital that is financed through debt, remains steady at 0.00 over the same period. This suggests that WEC Energy Group has a capital structure with a minimal proportion of debt relative to its total capital.
Moreover, the Debt-to-equity ratio, revealing the extent of a company's financing that comes from debt versus equity, also registers 0.00 from 2020 to 2024. This indicates a strong equity position, as the company's debt levels are negligible compared to its equity.
Lastly, the Financial leverage ratio, which considers the company's total assets in relation to its equity, has shown a slight increasing trend from 3.53 in 2020 to 3.82 in 2024. Although the ratio has increased, it still indicates that the company relies more on equity rather than debt to finance its assets.
In conclusion, WEC Energy Group Inc's solvency ratios reflect a robust financial position with low debt levels and a stable capital structure, implying a healthy capacity to meet its financial obligations and weather economic uncertainties effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.66 | 3.11 | 3.94 | 3.79 | 3.54 |
The interest coverage ratio for WEC Energy Group Inc has shown a generally stable trend over the past five years. Starting at 3.54 in December 31, 2020, it increased to 3.79 by the end of 2021 and further improved to 3.94 by the end of 2022. However, there was a slight decline in the ratio in 2023, dropping to 3.11, and a more significant decrease to 2.66 by December 31, 2024.
Overall, the company's ability to cover its interest expenses has been relatively consistent in the range of 3 to 4 times in recent years, indicating a moderate level of financial health in terms of meeting its interest obligations. The slight decline in 2023 and the more substantial decrease in 2024 may warrant further investigation to understand the factors impacting the company's interest coverage ratio in those years.