Allete Inc (ALE)
Total asset 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 |
| Total assets | US$ in thousands | 6,656,400 | 6,845,600 | 6,422,300 | 6,084,600 | 5,482,800 |
| Total asset turnover | 0.28 | 0.23 | 0.22 | 0.19 | 0.23 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,879,800K ÷ $6,656,400K
= 0.28
The total asset turnover for Allete, Inc. has shown some variability over the past five years. It increased from 0.23 in 2019 to 0.28 in 2020, suggesting that the company was able to generate more revenue from its total assets in 2020. However, the ratio decreased to 0.22 in 2021 and 0.19 in 2022, indicating a decline in efficiency in utilizing its assets to generate sales during those years.
In 2023, the total asset turnover improved to 0.28, returning to the level seen in 2020. This increase could imply that Allete, Inc. has managed to enhance its asset utilization efficiency once again, potentially by increasing sales generated from its total assets compared to the previous year.
Overall, while the total asset turnover ratio has fluctuated, Allete, Inc. should continue to monitor and strive to maintain or improve this metric to ensure efficient utilization of its assets in generating revenue.
Peer comparison
Dec 31, 2023