Allete Inc (ALE)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	180,900	134,200	151,300	138,200	179,800
Revenue	US$ in thousands	1,879,800	1,570,700	1,419,200	1,169,100	1,240,500
Operating profit margin		9.62%	8.54%	10.66%	11.82%	14.49%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $180,900K ÷ $1,879,800K
= 9.62%

The operating profit margin for Allete, Inc. has shown a declining trend over the past five years, decreasing from 14.49% in 2019 to 9.62% in 2023. This indicates that the company's ability to generate profits from its core operations has been weakening. The decreasing trend may suggest potential challenges in managing operating expenses or generating sufficient revenue to cover costs. It is important for Allete, Inc. to closely monitor and address the factors contributing to this decline in operating profit margin to ensure long-term profitability and sustainability.