Allete Inc (ALE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 32,800 | 71,900 | 36,400 | 45,100 | 44,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 301,000 |
| Receivables | US$ in thousands | 175,300 | 161,000 | 167,100 | 148,400 | 132,800 |
| Total current liabilities | US$ in thousands | 404,200 | 377,600 | 716,200 | 543,400 | 459,600 |
| Quick ratio | 0.51 | 0.62 | 0.28 | 0.36 | 1.04 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($32,800K
+ $—K
+ $175,300K)
÷ $404,200K
= 0.51
The quick ratio of Allete Inc has shown fluctuations over the past five years. In December 2020, the quick ratio was 1.04, indicating that the company had $1.04 in liquid assets available to cover each $1 of current liabilities. However, there has been a significant decrease in the quick ratio in subsequent years.
By December 2021, the quick ratio declined to 0.36, suggesting a decrease in the company's ability to cover its short-term obligations with its most liquid assets. This trend continued into December 2022, with a quick ratio of 0.28, indicating a further deterioration in liquidity.
In December 2023, there was a notable improvement in the quick ratio to 0.62, signaling a partial recovery in the company's liquidity position. However, the quick ratio remained below 1, indicating that Allete Inc may still face challenges in meeting its short-term obligations using its available liquid assets.
Lastly, by December 2024, the quick ratio stood at 0.51, showing a slight decrease from the previous year. Overall, the trend in Allete Inc's quick ratio suggests fluctuations in liquidity levels, with the company showing varying degrees of ability to cover its short-term liabilities with its most liquid assets over the five-year period.
Peer comparison
Dec 31, 2024