Allete Inc (ALE)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	179,300	247,100	189,300	169,200	165,400
Revenue	US$ in thousands	1,529,800	1,879,800	1,570,700	1,419,200	1,169,100
Net profit margin		11.72%	13.15%	12.05%	11.92%	14.15%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $179,300K ÷ $1,529,800K
= 11.72%

To analyze Allete Inc's net profit margin over the five-year period from 2020 to 2024, we observe a fluctuating trend.

In 2020, the net profit margin stood at 14.15%, indicating that Allete Inc generated a net profit equivalent to approximately 14.15% of its total revenue for that year. However, the net profit margin decreased to 11.92% in 2021, suggesting a decrease in profitability compared to the previous year.

In 2022, there was a slight increase in the net profit margin to 12.05%, but it remained lower than the initial value in 2020. The trend reversed in 2023, with the net profit margin improving to 13.15%, indicating better profitability for the company that year.

However, in 2024, the net profit margin declined to 11.72%, falling below the levels seen in 2020 and 2023. This downward trend in 2024 may raise concerns about Allete Inc's ability to maintain consistent profitability.

Overall, the fluctuations in Allete Inc's net profit margin over the five-year period suggest varying levels of profitability and financial performance. Further analysis of the company's operations and financial strategies may be necessary to understand the factors contributing to these changes in profitability.