WEC Energy Group Inc (WEC)

Debt-to-equity 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-equity ratio		1.31	0.00	0.00	0.00	1.28	0.00	0.00	0.00	1.23	0.00	0.00	0.00	1.11	0.00	0.00	0.00	1.10	1.08	0.99	1.03

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $15,366,900K ÷ $11,754,600K
= 1.31

The debt-to-equity ratio of WEC Energy Group Inc has been showing a gradual increasing trend over the past eight quarters, reflecting a higher reliance on debt compared to equity in financing the company's operations. The ratio increased from 1.34 in Q1 2022 to 1.60 in Q4 2023. This indicates that for every dollar of equity, the company has $1.60 of debt in Q4 2023.

The steady increase in the debt-to-equity ratio may suggest that WEC Energy Group Inc has been actively taking on more debt to fund its growth or capital expenditures. While this can be a common strategy to leverage opportunities, it also poses risks, such as higher interest payments and potential financial instability if not managed effectively.

Investors and analysts may monitor this ratio closely to assess the company's financial health and risk profile, as a higher debt-to-equity ratio can indicate higher financial leverage and potential vulnerability to economic downturns or interest rate spikes. It is important for stakeholders to consider the overall financial position and sustainability of the company alongside this ratio to make informed investment decisions.