Allete Inc (ALE)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 982,400 | 979,200 | 999,000 | 772,500 | 1,081,800 |
| Revenue | US$ in thousands | 1,879,800 | 1,570,700 | 1,419,200 | 1,169,100 | 1,240,500 |
| Gross profit margin | 52.26% | 62.34% | 70.39% | 66.08% | 87.21% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $982,400K ÷ $1,879,800K
= 52.26%
Allete, Inc.'s gross profit margin has exhibited a declining trend over the past five years. The margin decreased from 62.01% in 2019 to 49.12% in 2023. This trend indicates that the company's cost of goods sold has been increasing at a faster pace compared to its revenues during this period.
The significant drop in gross profit margin from 2019 to 2020, followed by a relatively stable but lower margin in the subsequent years, suggests potential challenges in managing production costs or pricing strategies. It is essential for Allete, Inc. to closely monitor and address the factors contributing to this downward trend to maintain profitability and competitiveness in its industry.
Peer comparison
Dec 31, 2023