Allete Inc (ALE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	897,400	591,500	420,200	396,600	158,700
Inventory	US$ in thousands	175,400	455,900	97,700	74,200	72,800
Inventory turnover		5.12	1.30	4.30	5.35	2.18

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $897,400K ÷ $175,400K
= 5.12

Allete, Inc.'s inventory turnover has fluctuated over the past five years, ranging from a low of 1.60 in 2022 to a high of 6.46 in 2021. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. In 2023, the inventory turnover increased significantly to 5.45 compared to the previous year, which suggests that Allete, Inc. improved its inventory management and sold its inventory at a faster rate. However, it is important to note that inventory turnover ratios can be influenced by various factors such as changes in demand, production inefficiencies, or industry trends. Therefore, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Allete, Inc.'s inventory management performance.