MGE Energy (MGE Energy) Interest Coverage : 3.21 (As of Dec. 2023)

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What is MGE Energy Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. MGE Energy's Operating Income for the three months ended in Dec. 2023 was $24.2 Mil. MGE Energy's Interest Expense for the three months ended in Dec. 2023 was $-7.5 Mil. MGE Energy's interest coverage for the quarter that ended in Dec. 2023 was 3.21. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for MGE Energy's Interest Coverage or its related term are showing as below:

MGEE' s Interest Coverage Range Over the Past 10 Years
Min: 4.68 Med: 5.5 Max: 7.02
Current: 4.81

MGEE's Interest Coverage is ranked better than
58.6% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.73 vs MGEE: 4.81

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

MGE Energy Interest Coverage Historical Data

The historical data trend for MGE Energy's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

MGE Energy Interest Coverage Chart

MGE Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

4.81

4.68

4.86

5.17

4.81

MGE Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.01	5.35	4.95	5.72	3.21

Competitive Comparison of MGE Energy's Interest Coverage

For the Utilities - Regulated Electric subindustry, MGE Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

MGE Energy's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, MGE Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MGE Energy's Interest Coverage falls into.

MGE Energy Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

MGE Energy's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, MGE Energy's Interest Expense was $-30.4 Mil. Its Operating Income was $146.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $736.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	146.385	/	-30.429
	=	4.81

MGE Energy's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, MGE Energy's Interest Expense was $-7.5 Mil. Its Operating Income was $24.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $736.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	24.169	/	-7.528
	=	3.21

The higher the ratio, the stronger the company's Financial Strength is.

MGE Energy (NAS:MGEE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

MGE Energy Interest Coverage Related Terms

Thank you for viewing the detailed overview of MGE Energy's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

MGE Energy (MGE Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » MGE Energy Inc (NAS:MGEE) » Definitions » Interest Coverage

Comparable Companies

PNM POR HE IDA GNE VIA SUME OGE PNW EVRG NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG

Traded in Other Exchanges

N/A

Address

133 South Blair Street, Madison, WI, USA, 53788

Website

https://www.mgeenergy.com

MGE Energy Inc is a U.S. public utilities holding company based in Wisconsin. The firm generates, purchases, and distributes electricity and natural gas, and also provides transmission services, the company generates electricity from coal and purchased power, but also from natural gas, fuel oil, and renewable sources. MGE operates through five segments, which include Regulated electric utility operations, Regulated gas utility operations, Non-regulated energy operations, Transmission investments, and All other segment which includes investing in companies and property and financing the regulated operations. The majority of electric retail revenue is derived from commercial consumers whereas the majority of natural gas revenue is derived from residential consumers.

Executives

Scott Robert Smith	officer: VP Bus. Regulatory Strategy	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
James G Berbee	director	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
James Jerome Lorenz	officer: VP Business Operations	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Noble Lynnwood Wray	director	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Lynn K Hobbie	officer: Exec VP Marketing & Corp Comm	133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Gary J Wolter	director	133 SOUTH BLAIR ST., P.O. BOX 1231, MADISON WI 53701-1231
Cari Anne Renlund	officer: VP and General Counsel	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
James L Possin	director	133 SOUTH BLAIR STREET, P.O. BOX 1231, MADISON WI 53701-1231
Tamara Jean Johnson	officer: VP Accounting and Controller	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Jared Joseph Bushek	officer: VP Finance, CIO & Treasurer	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Marcia M Anderson	director	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
Jeffrey M Keebler	officer: Sr. VP-Energy Supply & Plan	133 S BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Regina M Millner	director	133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Donald D Peterson	officer: VP - Energy Technology	133 S. BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Thomas R Stolper	director	133 SOUTH BLAIR STREET, POST OFFICE BOX 1231, MADISON WI 53701-1231