Allete Inc (ALE)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,529,800 | 1,879,800 | 1,570,700 | 1,419,200 | 1,169,100 |
| Receivables | US$ in thousands | 175,300 | 161,000 | 167,100 | 148,400 | 132,800 |
| Receivables turnover | 8.73 | 11.68 | 9.40 | 9.56 | 8.80 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,529,800K ÷ $175,300K
= 8.73
To analyze the receivables turnover of Allete Inc over the past five years, the following data is observed:
1. December 31, 2020: 8.80
2. December 31, 2021: 9.56
3. December 31, 2022: 9.40
4. December 31, 2023: 11.68
5. December 31, 2024: 8.73
Receivables turnover indicates how efficiently a company is managing its accounts receivable by converting them into cash or sales. A higher receivables turnover ratio signifies a shorter time taken by the company to collect its outstanding receivables.
Based on the data provided, the receivables turnover for Allete Inc has shown fluctuations over the five-year period. The turnover ratio increased from 8.80 in 2020 to 11.68 in 2023, indicating an improvement in the efficiency of collecting receivables during this period.
However, in 2024, the receivables turnover ratio dropped to 8.73, which is lower than the previous year. This decrease may suggest a slower collection of accounts receivable or changes in the company's credit policies.
Overall, it is essential for Allete Inc to monitor its receivables turnover consistently to ensure effective management of its accounts receivable and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2024