Allete Inc (ALE)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,879,800 | 1,902,900 | 1,912,400 | 1,752,100 | 1,570,700 | 1,543,900 | 1,501,000 | 1,463,500 | 1,419,200 | 1,340,600 | 1,289,100 | 1,196,700 | 1,169,100 | 1,153,300 | 1,147,700 | 1,194,900 | 1,240,500 | 1,384,200 | 1,443,900 | 1,497,600 |
| Property, plant and equipment | US$ in thousands | 5,013,400 | 4,996,800 | 4,973,900 | 4,979,300 | 5,004,000 | 5,011,000 | 5,027,100 | 5,078,300 | 5,087,500 | 5,053,100 | 5,021,600 | 4,930,600 | 4,840,800 | 4,697,500 | 4,644,500 | 4,496,300 | 4,377,000 | 4,210,700 | 4,062,900 | 3,940,500 |
| Fixed asset turnover | 0.37 | 0.38 | 0.38 | 0.35 | 0.31 | 0.31 | 0.30 | 0.29 | 0.28 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.25 | 0.27 | 0.28 | 0.33 | 0.36 | 0.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,879,800K ÷ $5,013,400K
= 0.37
The fixed asset turnover ratio for Allete, Inc. has been relatively stable over the past eight quarters, ranging from 0.29 to 0.38. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio typically signifies better asset utilization and operational efficiency.
Allete's fixed asset turnover ratio averaged around 0.34 over the past two years. The slight variations in the ratios from quarter to quarter suggest that the company's ability to generate revenue from its fixed assets has been consistent. The ratios have mostly stayed within a narrow range, indicating a stable level of asset utilization.
However, the ratios are on the lower side, especially when compared to industry peers. This might indicate that Allete could potentially improve its efficiency in utilizing its fixed assets to generate revenue. Further analysis is needed to understand the reasons behind the lower ratios and to identify potential areas of improvement in asset utilization.
Peer comparison
Dec 31, 2023