Allete Inc (ALE)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.91 | 8.78 | 5.74 | 3.79 | 3.61 | |
| Number of days of payables | days | 190.64 | 41.57 | 63.56 | 96.42 | 101.24 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.91
= 190.64
The trend in Allete Inc's number of days of payables indicates a fluctuating pattern over the years. Starting at 101.24 days on December 31, 2020, the number decreased to 96.42 days by December 31, 2021. Subsequently, Allete managed to significantly reduce its payables period to 63.56 days by December 31, 2022, indicating a more efficient management of accounts payable.
However, there was a sharp increase to 190.64 days by December 31, 2024, which might raise concerns about the company's ability to pay its obligations promptly. It would be crucial to investigate the reasons behind this substantial increase in the number of days of payables to ensure sustainable financial health and liquidity management.
Peer comparison
Dec 31, 2024