Allete Inc (ALE)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,312,300	982,400	979,200	999,000	772,500
Revenue	US$ in thousands	1,529,800	1,879,800	1,570,700	1,419,200	1,169,100
Gross profit margin		85.78%	52.26%	62.34%	70.39%	66.08%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,312,300K ÷ $1,529,800K
= 85.78%

The gross profit margin of Allete Inc has shown fluctuation over the past few years. In December 31, 2020, the gross profit margin was 66.08%, indicating that the company retained 66.08% of its total revenue after accounting for the cost of goods sold.

By December 31, 2021, the gross profit margin had increased to 70.39%, reflecting an improvement in the company's ability to generate profits from its sales.

However, in December 31, 2022, the gross profit margin declined to 62.34%, suggesting potential challenges in managing the costs of production or pricing strategies.

The trend continued in December 31, 2023, with a further drop in the gross profit margin to 52.26%, indicating decreased profitability or potential cost inefficiencies within the company.

By December 31, 2024, the gross profit margin significantly increased to 85.78%, marking a substantial improvement in the company's ability to generate profits from its core business activities.

Overall, the fluctuating trend in Allete Inc's gross profit margin highlights the importance of closely monitoring cost management strategies and pricing decisions to sustain and enhance profitability levels in the future.