Allete Inc (ALE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		1.24	1.00	0.54	0.55	0.53

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $468,100K ÷ $377,600K
= 1.24

The current ratio of Allete, Inc. has shown positive trends over the past five years. In 2019, the company had a current ratio of 0.53, which increased to 0.55 in 2020 and further improved to 0.54 in 2021. However, a significant jump was observed in the current ratio in 2022 to 1.00, indicating a substantial improvement in the short-term liquidity position of the company.

The positive trend continued in 2023, with the current ratio reaching 1.24. This suggests that Allete, Inc. has significantly strengthened its ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates that the company's current assets are more than its current liabilities, which is generally considered a healthy sign for the company's financial health.

Overall, the increasing trend in Allete, Inc.'s current ratio over the past five years indicates an improvement in its liquidity position and ability to meet its short-term financial obligations. However, it's important to continue monitoring the current ratio to ensure the company maintains a strong liquidity position going forward.