WEC Energy Group Inc (WEC)

Debt-to-capital 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 stockholders’ equity US$ in thousands 11,754,600 11,783,400 11,711,800 11,667,000 11,407,300 11,385,900 11,321,000 11,273,600 10,943,600 10,938,900 10,861,300 10,797,500 10,500,100 10,481,100 10,414,100 10,374,500 10,143,800 10,081,400 10,046,600 10,014,900
Debt-to-capital ratio 0.57 0.00 0.00 0.00 0.56 0.00 0.00 0.00 0.55 0.00 0.00 0.00 0.53 0.00 0.00 0.00 0.52 0.52 0.50 0.51

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,366,900K ÷ ($15,366,900K + $11,754,600K)
= 0.57

The debt-to-capital ratio for WEC Energy Group Inc has been gradually increasing over the past eight quarters. It has risen consistently from 0.57 in Q1 2022 to 0.62 in Q4 2023. This suggests that the company has been relying more on debt financing relative to its total capital structure over time.

A higher debt-to-capital ratio may indicate that WEC Energy Group Inc is becoming more leveraged, potentially increasing its financial risk. It could also imply that the company is taking advantage of the current low-interest-rate environment to fund growth opportunities or capital expenditures.

Investors and stakeholders should monitor this trend closely to ensure that the company's increasing debt levels are sustainable and in line with its overall financial strategy. It is essential for WEC Energy Group Inc to manage its debt levels prudently to maintain its financial stability and creditworthiness in the long term.