Allete Inc (ALE)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,879,800	1,570,700	1,419,200	1,169,100	1,240,500
Receivables	US$ in thousands	161,000	167,100	148,400	132,800	116,500
Receivables turnover		11.68	9.40	9.56	8.80	10.65

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,879,800K ÷ $161,000K
= 11.68

Allete, Inc.'s receivables turnover ratio measures the efficiency with which the company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more quickly.

From 2019 to 2023, Allete's receivables turnover ratio has varied. In 2019, the ratio was 12.87, indicating that Allete was collecting payments relatively quickly. The ratio then decreased in 2020 to 10.45, but subsequently increased in 2021 to 11.47 and continued to improve in 2022 to 11.39 before reaching its peak at 13.70 in 2023.

The upward trend in the receivables turnover ratio suggests that Allete has been more efficient in collecting payments from its customers in recent years. This may indicate an improvement in the company's credit policies, a more effective accounts receivable management process, or an increase in the quality of its customer base.

Overall, the increasing trend in Allete's receivables turnover ratio reflects positively on the company's efficiency in managing its accounts receivable and converting sales into cash, which is a favorable indicator of its financial health and operational performance.