Allete Inc (ALE)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,398,100	1,421,200	1,422,300	1,406,100	1,418,600	1,391,800	1,375,000	1,360,500	1,316,800	1,238,200	1,188,800	1,099,400	1,077,000	1,061,200	1,057,100	1,105,400	1,135,600	1,279,300	1,313,000	1,344,200
Revenue (ttm)	US$ in thousands	1,879,800	1,902,900	1,912,400	1,752,100	1,570,700	1,543,900	1,501,000	1,463,500	1,419,200	1,340,600	1,289,100	1,196,700	1,169,100	1,153,300	1,147,700	1,194,900	1,240,500	1,384,200	1,443,900	1,497,600
Gross profit margin		74.37%	74.69%	74.37%	80.25%	90.32%	90.15%	91.61%	92.96%	92.78%	92.36%	92.22%	91.87%	92.12%	92.01%	92.11%	92.51%	91.54%	92.42%	90.93%	89.76%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,398,100K ÷ $1,879,800K
= 74.37%

The gross profit margin of Allete, Inc. has shown a declining trend over the past four quarters, from 55.70% in Q1 2022 to 49.12% in Q4 2023. This decrease indicates that the company's cost of goods sold relative to its revenue has been increasing. While the gross profit margin fluctuated slightly between quarters, the overall trend suggests a potential challenge in maintaining profitability in recent periods. It may be necessary for Allete, Inc. to closely monitor and control its production costs to improve its gross profit margin in the upcoming quarters.