Allete Inc (ALE)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.08 | 1.45 | 1.45 | 1.66 | 1.24 | 1.22 | 1.17 | 1.23 | 1.00 | 1.02 | 0.93 | 0.86 | 0.54 | 0.43 | 0.47 | 0.66 | 0.55 | 0.42 | 0.31 | 0.44 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $435,200K ÷ $404,200K
= 1.08
The current ratio of Allete Inc has shown fluctuations over the past few years. The ratio was below 1 in the earlier periods, indicating that the company may have had difficulty meeting its short-term obligations with its current assets alone. However, the ratio improved significantly in recent quarters, surpassing 1, which suggests that Allete Inc has strengthened its ability to cover its short-term liabilities with its current assets.
The upward trend in the current ratio is a positive signal, indicating that the company may have enhanced its liquidity position and financial stability. A current ratio above 1 typically indicates that a company has sufficient current assets to cover its current liabilities, which is important for financial health and the ability to weather economic uncertainties.
The current ratio peaking at 1.66 in March 2024 suggests that Allete Inc had a strong liquidity position at that point in time. It will be important for stakeholders to monitor the trend of the current ratio over time to assess Allete Inc's ability to effectively manage its short-term financial obligations.
Peer comparison
Dec 31, 2024