Allete Inc (ALE)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	6,754,300	6,656,400	6,845,600	6,422,300	6,084,600
Operating ROA		2.37%	2.72%	1.96%	2.36%	2.27%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $160,100K ÷ $6,754,300K
= 2.37%

Based on the provided data, Allete Inc's operating return on assets (operating ROA) has shown some fluctuation over the years. In 2020, the operating ROA was 2.27%, which increased slightly to 2.36% in 2021. However, in 2022, there was a decline to 1.96%, followed by a significant improvement to 2.72% in 2023. In the most recent year, 2024, the operating ROA remained relatively stable at 2.37%.

The fluctuations in operating ROA indicate varying levels of efficiency in generating profits from the assets employed in the company's operations. It is important for Allete Inc to monitor and analyze the factors affecting these fluctuations to ensure sustained profitability and effective utilization of its assets. Further analysis may be required to identify the specific drivers behind the changes in operating ROA over the years and assess the company's overall operational performance.