Allete Inc (ALE)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 160,100 | 180,900 | 134,200 | 151,300 | 138,200 |
| Revenue | US$ in thousands | 1,529,800 | 1,879,800 | 1,570,700 | 1,419,200 | 1,169,100 |
| Operating profit margin | 10.47% | 9.62% | 8.54% | 10.66% | 11.82% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $160,100K ÷ $1,529,800K
= 10.47%
Based on the data provided for Allete Inc's operating profit margin over the years, we observe a fluctuating trend. In 2020, the operating profit margin stood at 11.82%, indicating the company generated 11.82 cents of operating profit for each dollar of sales. This margin decreased to 10.66% in 2021, suggesting a slight decline in profitability.
Subsequently, in 2022, there was a more significant drop in the operating profit margin to 8.54%, possibly signaling challenges in managing operating expenses or generating sufficient revenue. However, the margin rebounded in 2023 to 9.62%, showing some improvement in operational efficiency or revenue generation strategies.
Finally, by the end of 2024, the operating profit margin recovered further to 10.47%, indicating the company's ability to enhance profitability. Overall, the fluctuating nature of the operating profit margin underscores the importance of closely monitoring cost management, revenue growth, and operational efficiency to sustain and improve profitability over time.
Peer comparison
Dec 31, 2024