Allete Inc (ALE)

Total asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,879,800	1,902,900	1,912,400	1,752,100	1,570,700	1,543,900	1,501,000	1,463,500	1,419,200	1,340,600	1,289,100	1,196,700	1,169,100	1,153,300	1,147,700	1,194,900	1,240,500	1,384,200	1,443,900	1,497,600
Total assets	US$ in thousands	6,656,400	6,644,800	6,567,900	6,704,500	6,845,600	6,858,000	6,839,000	6,556,000	6,422,300	6,332,200	6,293,300	6,274,500	6,084,600	5,878,500	5,760,400	5,619,500	5,482,800	5,275,800	5,176,500	5,218,800
Total asset turnover		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	0.23	0.26	0.28	0.29

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,879,800K ÷ $6,656,400K
= 0.28

Total asset turnover is a key financial ratio used to assess a company's efficiency in generating sales revenue relative to its total assets. In the case of Allete, Inc., the total asset turnover ratio has shown a trend of improvement over the past few quarters, increasing from 0.22 in Q1 2022 to 0.28 in Q4 2023. This suggests that the company has become more effective in utilizing its assets to generate sales.

A total asset turnover ratio of 0.28 in Q4 2023 indicates that for every dollar of total assets, Allete, Inc. generated $0.28 in sales revenue during that quarter. This suggests that the company is efficient in utilizing its assets to generate revenue. The increasing trend in the total asset turnover ratio over the quarters implies that the company has been able to improve its asset utilization efficiency, which can lead to higher profitability and returns for investors.

Overall, the improving trend in Allete, Inc.'s total asset turnover ratio indicates that the company is managing its assets more efficiently and effectively, which bodes well for its financial performance and potential future growth.