Allete Inc (ALE)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 213,900 | 567,400 | 553,600 | 706,900 | 894,000 | 916,900 | 925,300 | 781,200 | 587,300 | 465,000 | 438,900 | 415,900 | 415,300 | 401,000 | 398,900 | 395,900 | 390,700 | 137,800 | 136,300 | 135,200 |
| Payables | US$ in thousands | 113,600 | 110,800 | 94,100 | 84,200 | 102,200 | 112,300 | 89,300 | 84,900 | 103,000 | 124,300 | 134,800 | 75,900 | 111,000 | 101,900 | 100,000 | 107,000 | 110,000 | 79,000 | 86,100 | 164,400 |
| Payables turnover | 1.88 | 5.12 | 5.88 | 8.40 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $213,900K ÷ $113,600K
= 1.88
Allete Inc's payables turnover ratio measures the number of times a company pays off its accounts payable during a specific period. Looking at the data provided, we can see fluctuations in Allete Inc's payables turnover over the given period.
The payables turnover ratio has shown significant variability, starting at a low of 0.82 as of March 31, 2020, before gradually increasing to a peak of 10.36 by June 30, 2023. This indicates that, on average, Allete Inc took longer to pay off its accounts payable in the initial periods before accelerating the payment cycle.
However, the ratio then decreased to 8.40 as of March 31, 2024, followed by a sharper decline to 1.88 by December 31, 2024. This might imply that Allete Inc started taking longer to settle its accounts payable in the latter periods, potentially signaling a change in the company's payment policies or vendor management strategies.
Overall, fluctuations in the payables turnover ratio can reflect changes in the company's liquidity position, operational efficiency, and relationship with suppliers. It is essential for Allete Inc to carefully monitor its payables turnover ratio to ensure optimal cash flow management and maintain healthy vendor relationships.
Peer comparison
Dec 31, 2024