WEC Energy Group Inc (WEC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.00 | 0.00 | 0.00 | 0.35 | 0.00 | 0.00 | 0.00 | 0.35 | 0.00 | 0.00 | 0.00 | 0.32 | 0.00 | 0.00 | 0.00 | 0.32 | 0.32 | 0.29 | 0.31 |
| Debt-to-capital ratio | 0.57 | 0.00 | 0.00 | 0.00 | 0.56 | 0.00 | 0.00 | 0.00 | 0.55 | 0.00 | 0.00 | 0.00 | 0.53 | 0.00 | 0.00 | 0.00 | 0.52 | 0.52 | 0.50 | 0.51 |
| 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 |
| Financial leverage ratio | 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 | 3.45 | 3.41 | 3.38 | 3.37 |
The solvency ratios of WEC Energy Group Inc show a consistent trend over the past eight quarters. The debt-to-assets ratio has remained relatively stable around the 0.42 to 0.40 range, indicating that the company's total debt accounts for approximately 40% to 42% of its total assets.
Similarly, the debt-to-capital ratio has shown a consistent range between 0.61 and 0.57, signifying that debt comprises approximately 57% to 61% of the company's total capital structure. This suggests that WEC Energy Group relies more on debt financing compared to equity financing.
The debt-to-equity ratio has shown a gradual increase over the quarters, indicating that the company's debt levels in relation to equity have been on the rise. From Q1 2022 to Q4 2023, the ratio has increased from 1.34 to 1.60, implying an escalating reliance on debt to finance the company's operations.
Lastly, the financial leverage ratio has also displayed a consistent upward trend, reflecting an increase in the company's financial leverage over time. The ratio has increased from 3.46 in Q1 2022 to 3.74 in Q4 2023, indicating that WEC Energy Group's reliance on debt to fund its operations has been growing steadily.
Overall, the solvency ratios of WEC Energy Group Inc suggest that the company has been increasing its leverage and reliance on debt financing to support its operations and growth initiatives over the analyzed quarters. Investors and stakeholders may want to monitor these ratios closely to assess the company's financial risk and ability to meet its debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.62 | 2.85 | 2.99 | 3.27 | 3.74 | 3.91 | 3.96 | 3.87 | 3.64 | 3.70 | 3.63 | 3.53 | 3.46 | 3.38 | 3.23 | 3.19 | 3.05 | 2.96 | 3.03 | 3.17 |
The interest coverage ratio for WEC Energy Group Inc has been consistently above 3.0 for the past eight quarters, indicating that the company's operating income is sufficient to cover its interest expenses. The ratio has shown a slight decreasing trend from Q1 2022 to Q4 2023, suggesting a possible decline in the company's ability to cover its interest payments over time. However, the interest coverage ratio still remains at healthy levels, above the industry benchmark of 2.0, indicating a low risk of default on debt obligations. Continued monitoring of this ratio is advisable to assess the company's financial health and ability to manage its debt obligations.