WEC Energy Group Inc (WEC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,939,700 | 41,872,100 | 38,988,500 | 37,028,100 | 34,951,800 |
| Total stockholders’ equity | US$ in thousands | 11,754,600 | 11,407,300 | 10,943,600 | 10,500,100 | 10,143,800 |
| Financial leverage ratio | 3.74 | 3.67 | 3.56 | 3.53 | 3.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,939,700K ÷ $11,754,600K
= 3.74
The financial leverage ratio of WEC Energy Group Inc has been gradually increasing over the past five years, indicating a higher level of financial leverage within the company. This ratio has grown from 3.45 in 2019 to 3.74 in 2023, with a relatively steady upward trend. A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing to support its operations and growth. The continuous increase in this ratio may indicate that the company has been taking on more debt relative to its equity over the years, potentially increasing its financial risk and leverage position. Further analysis of the company's debt management strategies and overall financial health would be required to determine the impact of this trend on WEC Energy Group Inc's long-term stability and profitability.
Peer comparison
Dec 31, 2023