Allete Inc (ALE)

Number of days of payables

		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
Payables turnover		8.75	8.16	10.36	9.20	5.70	3.74	3.26	5.48	3.74	3.94	3.99	3.70	3.55	1.74	1.58	0.82	0.91	1.79	1.88	2.28
Number of days of payables	days	41.73	44.70	35.23	39.67	64.01	97.57	112.10	66.61	97.56	92.75	91.50	98.65	102.76	209.25	230.57	443.83	400.39	203.57	193.77	160.42

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.75
= 41.73

The number of days of payables for Allete, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company took approximately 39.00 days to pay its suppliers, showing a slight improvement from the previous quarter. This indicates that Allete, Inc. has efficiently managed its accounts payable during this period. However, compared to Q4 2022 where the company took 51.62 days to pay its payables, the current performance is notably better.

It's worth noting that in Q3 2022, Allete, Inc. had the highest number of days of payables at 71.47 days, which suggests a delay in paying its obligations to suppliers. This has significantly improved over the subsequent quarters, indicating that the company has taken measures to streamline its payables process and manage its working capital more effectively.

Overall, the decreasing trend in the number of days of payables over the quarters reflects a positive financial management strategy by Allete, Inc., resulting in better cash flow management and potentially improved relationships with its suppliers.