WEC Energy Group Inc (WEC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data, WEC Energy Group Inc's solvency ratios indicate a very low level of indebtedness and strong financial stability over the years.
- The Debt-to-assets ratio has consistently been at 0.00, indicating that the company has had no debt in relation to its total assets, reflecting a very conservative financial structure.
- The Debt-to-capital ratio has also remained at 0.00 throughout the period, implying that the company has financed its operations predominantly through equity rather than debt, which is generally considered a positive sign of financial health.
- The Debt-to-equity ratio has consistently been at 0.00, indicating that the company's equity has been sufficient to cover any potential debt obligations.
- The Financial leverage ratio, which measures the extent to which the company relies on debt financing, shows a slight increase over time but remains at a relatively low level. The ratio of 1.27 as of December 31, 2024, signifies that the company's total assets are financed at a low proportion through debt compared to equity.
Overall, WEC Energy Group Inc's solvency ratios suggest a strong financial position with minimal debt obligations and a sound risk management strategy in place.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.16 | 2.86 | 3.05 | 3.23 | 3.11 | 3.35 | 3.56 | 3.84 | 4.36 | 4.49 | 4.48 | 4.43 | 4.19 | 4.19 | 4.11 | 4.01 | 3.86 | 3.78 | 3.62 | 3.53 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. For WEC Energy Group Inc, the interest coverage ratio has shown a generally positive trend from March 31, 2020, to December 31, 2024, indicating a strengthening ability to meet interest obligations with operating earnings.
The interest coverage ratio improved from 3.53 on March 31, 2020, to 4.19 on December 31, 2021, suggesting the company's earnings were able to cover its interest expenses more effectively over this period. Subsequently, the ratio fluctuated slightly, reaching a peak of 4.49 on September 30, 2022, before declining to 2.86 on September 30, 2024.
The declining trend in the interest coverage ratio from September 30, 2022, to September 30, 2024, may signal a relative weakening in the company's ability to cover interest costs with operating income. This downward trend could be a concern for stakeholders, as a lower interest coverage ratio may indicate potential difficulties in meeting debt obligations.
It would be prudent for investors and creditors to monitor future changes in WEC Energy Group Inc's interest coverage ratio to assess the company's ability to manage its debt and interest obligations effectively.