WEC Energy Group Inc (WEC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 47,363,200 | 43,939,700 | 41,872,100 | 38,988,500 | 37,028,100 |
| Total stockholders’ equity | US$ in thousands | 12,395,000 | 11,754,600 | 11,407,300 | 10,943,600 | 10,500,100 |
| Financial leverage ratio | 3.82 | 3.74 | 3.67 | 3.56 | 3.53 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $47,363,200K ÷ $12,395,000K
= 3.82
The financial leverage ratio of WEC Energy Group Inc has shown a gradual increase over the period from December 31, 2020, to December 31, 2024. The ratio has moved from 3.53 in 2020 to 3.82 in 2024, indicating a rising trend in the company's reliance on debt to finance its operations and investments. This suggests that the company's debt levels have been increasing relative to its equity over the years, which could pose higher financial risks. It is essential for investors and stakeholders to monitor this trend closely to assess the company's ability to meet its debt obligations and sustain its operations effectively.
Peer comparison
Dec 31, 2024