Allete Inc (ALE)

Working capital 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 current assets	US$ in thousands	468,100	718,000	291,300	254,900	269,500
Total current liabilities	US$ in thousands	377,600	716,200	543,400	459,600	507,400
Working capital turnover		20.77	872.61	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,879,800K ÷ ($468,100K – $377,600K)
= 20.77

Based on the provided data, the working capital turnover for Allete, Inc. has shown significant fluctuations over the years. In 2023, the working capital turnover ratio stood at 20.77, indicating that the company generated $20.77 in revenue for every $1 of working capital. This suggests that Allete, Inc. efficiently utilized its working capital to generate revenue during the year.

In contrast, in 2022, the working capital turnover ratio spiked to 872.61, signifying an exceptional level of efficiency in converting working capital into sales. This substantial increase could be attributed to various factors such as improved inventory management, effective accounts receivable collection, or accelerated payment of accounts payable.

It is noteworthy that data for 2021, 2020, and 2019 is not available, making it challenging to assess the trend or draw comparisons for those years.

Overall, the working capital turnover ratio for Allete, Inc. has shown notable variability, with a substantial increase in 2022 compared to 2023. Further analysis of the company's financial performance and working capital management practices would be necessary to provide a more comprehensive evaluation of its efficiency in utilizing working capital.