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.