Allete Inc (ALE)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 217,500 | 897,400 | 591,500 | 420,200 | 396,600 |
| Payables | US$ in thousands | 113,600 | 102,200 | 103,000 | 111,000 | 110,000 |
| Payables turnover | 1.91 | 8.78 | 5.74 | 3.79 | 3.61 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $217,500K ÷ $113,600K
= 1.91
The payables turnover ratio for Allete Inc has shown fluctuating trends over the years. In 2020, the payables turnover ratio was 3.61, indicating that the company was able to turnover its accounts payables approximately 3.61 times during the year.
By 2021, the payables turnover ratio slightly improved to 3.79, suggesting a slightly more efficient management of accounts payables. This trend continued in 2022 with a significant increase in the ratio to 5.74, indicating that the company was able to pay off its suppliers more frequently during the year.
In 2023, Allete Inc further improved its payables turnover ratio to 8.78, showing a substantial increase in the efficiency of managing its accounts payables. This signifies that the company was paying off its suppliers almost nine times within the year, which is an impressive performance.
However, in 2024, there was a notable decline in the payables turnover ratio to 1.91, which may indicate a slower rate of paying off suppliers compared to the previous year. This decrease could be a cause for further analysis and investigation to understand the reasons behind this change.
Overall, the trend in Allete Inc's payables turnover ratio reflects varying levels of efficiency in managing accounts payables over the years, with notable improvements in certain periods and a decrease in others. Further evaluation and comparisons with industry benchmarks would provide a comprehensive understanding of the company's performance in this aspect.
Peer comparison
Dec 31, 2024