Allete Inc (ALE)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	71,900	125,500	47,900	29,900	36,400	42,100	74,600	60,100	45,100	59,000	62,500	159,000	44,300	79,000	25,700	67,000	69,300	100,300	203,100	353,300
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	317,000	—	301,000	301,000	291,000	—	—	—	—	—	—
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
Cash ratio		0.19	0.30	0.13	0.06	0.05	0.06	0.11	0.11	0.08	0.58	0.10	0.80	0.75	0.59	0.04	0.11	0.14	0.21	0.68	1.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($71,900K + $—K) ÷ $377,600K
= 0.19

The cash ratio of Allete, Inc. has shown fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In Q4 2023, the cash ratio stood at 0.41, indicating that the company had $0.41 of cash and cash equivalents for every $1 of current liabilities. This was a decrease from the previous quarter, where the ratio was 0.49. The decrease suggests a slight reduction in the company's ability to cover its short-term obligations solely with cash.

Comparing Q4 2023 to Q1 2023, there has been a notable improvement in the cash ratio from 0.22 to 0.41. This implies that the company significantly strengthened its ability to meet its short-term liabilities with available cash during this period.

The cash ratio in Q4 2023 (0.41) also exhibited substantial growth compared to the same period in the previous year, Q4 2022 (0.17). This indicates a positive trend in the company's liquidity position and its capacity to address immediate financial obligations.

Overall, while the cash ratio of Allete, Inc. has varied over the quarters, the recent improvement in Q4 2023 suggests a strengthened liquidity position compared to previous periods. Nevertheless, continuous monitoring of the cash ratio is essential to assess the company's ongoing ability to manage short-term financial obligations.