Allete Inc (ALE)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,529,800 | 1,567,700 | 1,539,300 | 1,718,200 | 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 |
| Total current assets | US$ in thousands | 435,200 | 483,400 | 432,200 | 433,200 | 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 |
| Total current liabilities | US$ in thousands | 404,200 | 334,400 | 297,600 | 260,800 | 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 |
| Working capital turnover | 49.35 | 10.52 | 11.44 | 9.97 | 20.77 | 21.21 | 29.02 | 16.64 | 872.61 | 95.30 | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,529,800K ÷ ($435,200K – $404,200K)
= 49.35
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates better efficiency in managing working capital.
Looking at the data provided for Allete Inc, the working capital turnover ratio was not available for most of the quarters between March 2020 and June 2022. However, starting in September 2022, the ratio showed a significant increase to 95.30, which suggests a more efficient use of working capital to generate revenue.
The ratio fluctuated over the subsequent quarters, indicating some variation in the company's working capital management. The working capital turnover ratio dropped to 9.97 in March 2024, showing a decrease in efficiency compared to the peak in September 2022.
In summary, Allete Inc experienced fluctuations in its working capital turnover ratio over the period, with some quarters showing improved efficiency in managing working capital to generate sales, while others indicating a decrease in efficiency. Monitoring this ratio can provide insights into the effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2024