Allete Inc (ALE)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	180,900	171,500	168,900	129,100	134,200	150,500	148,200	162,700	151,300	125,000	135,500	120,000	138,200	164,300	159,700	183,200	179,800	194,000	200,300	200,600
Total assets	US$ in thousands	6,656,400	6,644,800	6,567,900	6,704,500	6,845,600	6,858,000	6,839,000	6,556,000	6,422,300	6,332,200	6,293,300	6,274,500	6,084,600	5,878,500	5,760,400	5,619,500	5,482,800	5,275,800	5,176,500	5,218,800
Operating ROA		2.72%	2.58%	2.57%	1.93%	1.96%	2.19%	2.17%	2.48%	2.36%	1.97%	2.15%	1.91%	2.27%	2.79%	2.77%	3.26%	3.28%	3.68%	3.87%	3.84%

December 31, 2023 calculation

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

To analyze Allete, Inc.'s operating return on assets (operating ROA), we observe fluctuations in the ratio across the quarters provided. The operating ROA has varied between 1.93% and 2.72% over the past eight quarters.

The highest operating ROA was observed in Q4 2023 at 2.72%, indicating that the company generated $0.0272 in operating income for every dollar of assets during that period. This signifies higher operational efficiency and profitability compared to the other quarters.

Conversely, the lowest operating ROA was recorded in Q1 2023 at 1.93%. This suggests that the company generated $0.0193 in operating income for every dollar of assets in that quarter, reflecting relatively lower operational efficiency and profitability compared to the other periods.

Overall, it is important for Allete, Inc. to monitor and potentially improve its operating ROA consistently to ensure optimal utilization of assets and sustained profitability.