Allete Inc (ALE)
Total asset 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 |
| Total assets | US$ in thousands | 6,754,300 | 6,656,400 | 6,845,600 | 6,422,300 | 6,084,600 |
| Total asset turnover | 0.23 | 0.28 | 0.23 | 0.22 | 0.19 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,529,800K ÷ $6,754,300K
= 0.23
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its assets. In the case of Allete Inc, we observe an increasing trend in total asset turnover over the past five years.
Starting at 0.19 in 2020, the ratio has steadily improved to 0.23 in 2024, with a peak of 0.28 in 2023. This indicates that Allete Inc has become more effective in utilizing its assets to generate sales over the years.
The higher total asset turnover ratio suggests that the company is making better use of its assets to drive revenue growth, which is a positive sign for its operational efficiency. However, it is important to consider other factors such as industry benchmarks and market conditions to get a comprehensive understanding of the company's performance.
Peer comparison
Dec 31, 2024