WEC Energy Group Inc (WEC)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 47,363,200 45,196,500 44,582,200 43,927,200 43,939,700 43,441,700 43,019,300 42,795,900 41,872,100 40,761,000 39,607,100 38,974,500 38,988,500 38,400,900 37,794,900 37,600,600 37,028,100 35,422,000 35,042,000 34,832,200
Total stockholders’ equity US$ in thousands 37,227,900 12,112,400 12,113,300 12,143,100 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
Financial leverage ratio 1.27 3.73 3.68 3.62 3.74 3.69 3.67 3.67 3.67 3.58 3.50 3.46 3.56 3.51 3.48 3.48 3.53 3.38 3.36 3.36

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $47,363,200K ÷ $37,227,900K
= 1.27

The financial leverage ratio of WEC Energy Group Inc has shown a fluctuating trend over the past few years. The ratio was relatively stable between March 2020 and June 2021, ranging from 3.36 to 3.48. However, there was a noticeable increase in the ratio by the end of 2021, reaching 3.56 by December 31, 2021.

Subsequently, the financial leverage ratio continued to rise gradually, reaching its peak at 3.74 by December 31, 2023. This significant increase indicates that the company's reliance on debt to finance its operations and investments had been on the rise.

However, there was a notable drop in the financial leverage ratio by the end of 2024, plunging to 1.27. Such a drastic decrease in the ratio raises questions about potential factors that might have influenced this change, such as debt repayments, capital restructuring, or other strategic financial decisions made by the company.

Overall, the financial leverage ratio of WEC Energy Group Inc has experienced fluctuations in recent years, reflecting varying levels of leverage and debt utilization within the company's capital structure. Investors and stakeholders may need to closely monitor these changes to assess the company's financial risk and performance.