Allete Inc (ALE)

Working capital 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 current assets	US$ in thousands	435,200	468,100	718,000	291,300	254,900
Total current liabilities	US$ in thousands	404,200	377,600	716,200	543,400	459,600
Working capital turnover		49.35	20.77	872.61	—	—

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,529,800K ÷ ($435,200K – $404,200K)
= 49.35

Working capital turnover is a financial ratio that indicates how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover generally signifies better efficiency in managing working capital.

Analyzing the data provided for Allete Inc:
- In December 31, 2020 and December 31, 2021, the working capital turnover was not available, denoted by "—".
- In December 31, 2022, the working capital turnover was 872.61, indicating a significant increase in efficiency in utilizing working capital to generate revenue.
- In December 31, 2023, the working capital turnover dropped to 20.77, possibly suggesting a decrease in the efficiency of working capital management in that period.
- In December 31, 2024, the working capital turnover increased to 49.35, showing a slightly improved efficiency compared to the previous year.

Overall, the working capital turnover for Allete Inc has shown fluctuations over the years. It is crucial for the company to monitor and manage its working capital effectively to ensure optimal operational performance and financial health.