Xcel Energy Inc.: Company Profile and SWOT Analysis

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Xcel Energy Inc.: Company Profile and SWOT Analysis
Xcel Energy Inc.



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Xcel Energy Inc. Financial Snapshot



Operating Performance

Fast Facts

414 Nicollet Mall, Minneapolis, The company reported revenues of US$10,310.95

Headquarters Address

55401,United States of America million during 2010, with a CAGR of 1.17% during

2006–2010. Its revenue grew at an annual rate of

Telephone + 1 612 3305500

6.91% over the previous fiscal year. In 2010, the

company recorded an operating margin of 15.95%, as

Fax + 1 612 3305878 against 15.23% in 2009.



Website www.xcelenergy.com

Revenue and Margins

Ticker Symbol, Stock Exchange XEL, New York Stock Exchange



Number of Employees 11,290



Fiscal Year End December



Revenue (in US$ million) 10,310.95









SWOT Analysis



Strengths Weaknesses Return on Equity



Growth in top-line performance Dependency on thermal fuel sources The company recorded a return on equity (ROE) of

9.23% for 2010, as compared to its peers, CMS

Energy Corporation (Ticker: CMS), Wisconsin Energy

Strong customer base Reliance on few suppliers Corporation (Ticker: WEC) and DTE Energy

Company (Ticker: DTE), which recorded ROEs of

Vertically integrated structure 12.17%, 11.91% and 9.37% respectively. The

company reported an operating margin of 15.95% in

2010.

Opportunities Threats



Long-term US Energy outlook Increasing coal and gas prices Return on Equity





New projects Increasing competition



Stringent environmental laws and

Smart grid

regulations









Liquidity Position



The company reported a current ratio of 1.08 in 2010,

as compared to its peers, CMS Energy Corporation,

Wisconsin Energy Corporation and DTE Energy

Company, which recorded current ratios of 1.37, 0.77

and 1.15 respectively. As of December 2010, the

company recorded cash and short-term investments

of worth US$108.44 million, against US$55.41 million

current debt. The company reported a debt to equity

ratio of 1.19 in 2010 as compared to its peers, CMS

Energy Corporation, Wisconsin Energy Corporation

and DTE Energy Company, which recorded debt to

equity ratios of 2.64, 1.32 and 1.21 respectively.









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Xcel Energy Inc. - SWOT Profile Page 1

Xcel Energy Inc.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

1.4 Key Financial Performance Indicators ...................................................................................................................7

1.4.1 Revenue and Operating Profit ...........................................................................................................................7

1.4.2 Asset, Liabilities and Capex ...............................................................................................................................8

1.4.3 Net Debt vs. Gearing Ratio ................................................................................................................................9

1.4.4 Operational Efficiency ......................................................................................................................................10

1.4.5 Solvency ..........................................................................................................................................................11

1.4.6 Valuation ..........................................................................................................................................................12

1.5 Competitive Benchmarking ..................................................................................................................................13

1.5.1 Market Capitalization .......................................................................................................................................13

1.5.2 Efficiency ..........................................................................................................................................................14

1.5.3 Capital Expenditure ..........................................................................................................................................15

1.5.4 Valuation ..........................................................................................................................................................16

1.5.5 Turnover – Inventory and Asset .......................................................................................................................17

1.5.6 Liquidity ............................................................................................................................................................18

2 Mergers & Acquisitions and Partnerships ........................................................................................... 19

2.1 M&A and Partnerships Strategy ...........................................................................................................................19

3 Recent Developments ........................................................................................................................... 22

4 SWOT Analysis ..........................................................................................

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