Allete Inc (ALE)

Working capital 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 current assets	US$ in thousands	468,100	503,200	446,200	569,700	718,000	722,200	660,000	480,500	291,300	278,700	279,300	378,400	254,900	265,100	223,000	274,800	269,500	296,100	397,300	556,400
Total current liabilities	US$ in thousands	377,600	413,500	380,300	464,400	716,200	706,000	709,000	556,600	543,400	646,000	595,500	574,900	459,600	630,000	727,700	623,100	507,400	483,300	296,600	322,400
Working capital turnover		20.77	21.21	29.02	16.64	872.61	95.30	—	—	—	—	—	—	—	—	—	—	—	—	14.34	6.40

December 31, 2023 calculation

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

Based on the data provided for Allete, Inc.'s working capital turnover ratio over the past quarters, there have been significant fluctuations in this metric.

In Q4 2023, the working capital turnover ratio was 20.77, which indicates that the company generated $20.77 in revenue for every dollar of working capital invested. This ratio decreased slightly from the previous quarter's ratio of 21.21 in Q3 2023.

Interestingly, in Q2 2023, the ratio spiked to 29.02, reflecting a substantial improvement in efficiency in utilizing working capital to generate revenue. However, it dropped in Q1 2023 to 16.64.

Notably, the working capital turnover ratio in Q4 2022 had an exceptionally high value of 872.61, suggesting a significant increase in revenue generation efficiency compared to the previous quarters. This could be due to various factors such as inventory management, receivables collection, or payable management.

Unfortunately, there is missing data for Q2 2022 and Q1 2022, making it challenging to provide a complete trend analysis for working capital turnover. It is crucial for the company to consistently monitor and improve its working capital management to ensure optimal efficiency in generating revenue.