Allete Inc (ALE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	71,900	36,400	45,100	44,300	69,300
Short-term investments	US$ in thousands	—	—	—	301,000	—
Receivables	US$ in thousands	161,000	167,100	148,400	132,800	116,500
Total current liabilities	US$ in thousands	377,600	716,200	543,400	459,600	507,400
Quick ratio		0.62	0.28	0.36	1.04	0.37

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,900K + $—K + $161,000K) ÷ $377,600K
= 0.62

The quick ratio of Allete, Inc. has shown varying trends over the past five years. In 2023, the quick ratio improved significantly to 0.78 from 0.37 in 2022. This suggests that Allete had a higher ability to cover its short-term liabilities with its most liquid assets in 2023.

Comparing this to the ratios in 2021, 2020, and 2019 which were 0.36, 0.39, and 0.39 respectively, it indicates a positive trend in liquidity for the company as it moved from a lower quick ratio to a higher one in 2023.

Overall, the improvement in the quick ratio from 2022 to 2023 reflects a stronger liquidity position for Allete, Inc., indicating an enhanced ability to meet its short-term obligations with its quick assets.