Allete Inc (ALE)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	6,656,400	6,845,600	6,422,300	6,084,600	5,482,800
Operating ROA		2.72%	1.96%	2.36%	2.27%	3.28%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $180,900K ÷ $6,656,400K
= 2.72%

The operating return on assets (operating ROA) of Allete, Inc. has exhibited fluctuations over the past five years. In 2023, the operating ROA increased to 2.72% from 1.96% in 2022 but remained below the levels seen in 2019 and 2020. This suggests that Allete's ability to generate operating income from its assets improved from the previous year but is not yet back to the peak levels achieved in 2019.

The trend from 2019 to 2023 shows a general decline in operating ROA, indicating a potential decrease in the company's operating efficiency and profitability relative to its asset base. This declining trend may warrant further investigation into the company's operational performance and asset utilization to identify areas for improvement.

Overall, the operating ROA of Allete, Inc. provides insights into the company's ability to generate operating income relative to its total assets, highlighting the importance of effectively managing assets to drive profitability.