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.