Allete Inc (ALE)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 1.38 3.41 3.00 3.87 5.10 5.09 4.76 2.25 1.29 0.98 1.23 2.12 4.25 4.48 4.53 5.35 5.27 1.84 1.66 1.71
Receivables turnover 8.73 11.46 11.57 12.08 11.68 15.91 15.52 14.56 9.40 12.81 12.92 12.36 9.56 12.17 12.25 10.54 8.80 12.54 13.38 12.02
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
Working capital turnover 49.35 10.52 11.44 9.97 20.77 21.21 29.02 16.64 872.61 95.30 — — — — — — — — — —

Inventory Turnover Ratio:
Allete Inc's Inventory turnover ratio fluctuated over the period, indicating the number of times the company sold and replaced its inventory during the years. The ratio improved from 1.71 in March 2020 to a peak of 5.35 in March 2021. However, it decreased significantly afterwards, reaching 1.38 in December 2024.

Receivables Turnover Ratio:
The Receivables turnover ratio represents how efficiently Allete Inc collected outstanding receivables during the years. The company's ratio varied, with a peak of 15.91 in September 2023 and a low of 8.73 in December 2024. Overall, the company showed relatively good efficiency in collecting receivables.

Payables Turnover Ratio:
Allete Inc's Payables turnover ratio reflects how quickly the company paid its suppliers. The ratio improved over the period, reaching its peak at 10.36 in June 2023. This indicates that the company managed its payables efficiently, with increasing payment turnover.

Working Capital Turnover Ratio:
The Working Capital turnover ratio provides insight into how effectively the company is utilizing its working capital to generate revenue. Allete Inc had a significant figure of 872.61 in December 2022, suggesting the company generated a substantial amount of revenue relative to its working capital. However, the ratio decreased in the following periods, indicating a decrease in revenue generated per unit of working capital.

Overall, analyzing Allete Inc's activity ratios reveals fluctuations in efficiency and effectiveness in managing its inventory, receivables, payables, and working capital over the years.

Average number of days

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
Days of inventory on hand (DOH) days 263.81 107.17 121.51 94.34 71.61 71.77 76.64 162.08 283.34 370.65 295.89 172.54 85.87 81.56 80.61 68.22 69.32 198.13 219.59 213.28
Days of sales outstanding (DSO) days 41.83 31.85 31.54 30.21 31.26 22.94 23.51 25.06 38.83 28.49 28.26 29.53 38.17 30.00 29.79 34.62 41.46 29.12 27.29 30.36
Number of days of payables days 193.85 71.28 62.04 43.48 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

Allete Inc's Days of Inventory on Hand (DOH) ratio fluctuated over the analyzed periods, indicating variations in the company's inventory management efficiency. The ratio reached its peak at 370.65 days on September 30, 2022, which may suggest potential issues with excess inventory levels. However, the ratio decreased to 71.61 days by December 31, 2023, reflecting improvements in inventory turnover.

When assessing Allete Inc's Days of Sales Outstanding (DSO) ratio, a declining trend can be observed from 41.46 days on December 31, 2020, to 31.85 days on September 30, 2024. This suggests that the company has been collecting its accounts receivable more efficiently over the periods, which is a positive indicator of effective credit management and liquidity.

The Number of Days of Payables ratio shows fluctuations, with a significant increase from 102.76 days on December 31, 2020, to 193.85 days on December 31, 2024. This may indicate that Allete Inc is taking longer to pay its suppliers, potentially impacting relationships with vendors and liquidity management.

Overall, the analysis of Allete Inc's activity ratios reveals varying trends in inventory management, accounts receivable collection, and payment practices, which are essential factors in assessing the company's operational efficiency and financial health.

Long-term

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
Fixed asset turnover 0.30 0.31 0.30 0.34 0.37 0.38 0.38 0.35 0.31 0.31 0.30 0.29 0.28 0.27 0.26 0.24 0.24 0.25 0.25 0.27
Total asset turnover 0.23 0.23 0.23 0.26 0.28 0.29 0.29 0.26 0.23 0.23 0.22 0.22 0.22 0.21 0.20 0.19 0.19 0.20 0.20 0.21

Allete Inc's Fixed Asset Turnover ratio has shown a fluctuating trend over the period of analysis, starting at 0.27 in March 2020, declining slightly to 0.24 by December 2021 before picking up to 0.38 in September 2023. However, the ratio decreased again to 0.30 by December 2024. This indicates that Allete is generating $0.30 in sales for every $1 invested in fixed assets.

In contrast, the Total Asset Turnover ratio has been relatively stable, with a slight increase from 0.20 in June 2020 to 0.23 by December 2024. This indicates that Allete generates $0.23 in sales for every $1 of total assets.

Overall, the Fixed Asset Turnover ratio reflects the efficiency of Allete in generating sales from its fixed assets, while the Total Asset Turnover ratio provides a broader view of sales generated from all assets. These ratios are essential in evaluating the utilization of assets to generate revenue and assessing the company's operational performance over time.