Allete Inc (ALE)

Current 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
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
Current ratio		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	0.53	0.61	1.34	1.73

December 31, 2023 calculation

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

Allete, Inc.'s current ratio has been gradually improving over the past eight quarters, indicating an increase in its short-term liquidity and ability to meet its current liabilities. In Q4 2022, the company had a current ratio of 1.00, which improved to 1.24 by Q4 2023. This trend suggests that Allete, Inc. has become more efficient in managing its current assets relative to its current liabilities.

The current ratio of the company has consistently been above 1, starting from Q2 2022, which indicates that Allete, Inc. has had more current assets than current liabilities to cover its short-term obligations during these quarters. The current ratio peaked at 1.24 in Q4 2023, further strengthening the company's short-term financial position.

Overall, the increasing trend in Allete, Inc.'s current ratio reflects positively on its liquidity position and ability to manage its short-term debts. This indicates that the company may have improved its working capital management or increased its current assets relative to current liabilities over the observed period, suggesting a healthy financial condition.