WEC Energy Group Inc (WEC)

Debt-to-assets 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
Long-term debt	US$ in thousands	15,366,900	—	—	—	14,655,700	—	—	—	13,472,400	—	—	—	11,672,800	—	—	—	11,171,400	10,897,300	9,921,000	10,326,700
Total assets	US$ in thousands	43,939,700	43,441,700	43,019,300	42,795,900	41,872,100	40,761,000	39,607,100	38,974,500	38,988,500	38,400,900	37,794,900	37,600,600	37,028,100	35,422,000	35,042,000	34,832,200	34,951,800	34,377,200	33,934,300	33,737,100
Debt-to-assets ratio		0.35	0.00	0.00	0.00	0.35	0.00	0.00	0.00	0.35	0.00	0.00	0.00	0.32	0.00	0.00	0.00	0.32	0.32	0.29	0.31

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $15,366,900K ÷ $43,939,700K
= 0.35

The debt-to-assets ratio of WEC Energy Group Inc has shown a consistent upward trend over the past eight quarters. Starting at 0.39 in Q1 2022, it has gradually increased to 0.43 in Q4 2023. This indicates that the company's level of debt in relation to its total assets has been increasing over time.

A debt-to-assets ratio of 0.43 in Q4 2023 implies that 43% of WEC Energy Group's assets are financed through debt. This ratio suggests that the company relies moderately on debt to fund its operations and investments, with a significant portion of its assets still financed through equity.

The steady increase in the debt-to-assets ratio may signal a strategic shift in WEC Energy Group's financing structure towards higher reliance on debt for funding expansion and growth opportunities. It could also indicate that the company is taking advantage of favorable interest rates to finance its operations through borrowing.

While a higher debt-to-assets ratio can indicate increased financial leverage and potential risk, it is essential to consider other factors such as the company's ability to service its debt, profitability, and overall financial health. Investors and stakeholders should closely monitor WEC Energy Group's financial performance and debt management practices to assess the implications of this trend on the company's long-term sustainability.