Allete Inc (ALE)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	160,100	165,100	155,800	179,900	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
Total assets	US$ in thousands	6,754,300	6,737,200	6,661,300	6,604,600	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
Operating ROA		2.37%	2.45%	2.34%	2.72%	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%

December 31, 2024 calculation

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

The operating return on assets (operating ROA) for Allete Inc has fluctuated over the period from March 31, 2020 to December 31, 2024. The metric started at 3.26% in March 2020 and gradually decreased to a low of 1.91% in March 2021. There was a slight recovery in the following quarters, with a peak of 2.72% achieved in March 2024.

Overall, the operating ROA ranged between 1.91% and 3.26% during this period, indicating the company's ability to generate operating earnings relative to its total assets. The downward trend observed in the initial quarters followed by a recovery and stabilization in the later quarters suggests varying operational performance and profitability. It is essential for Allete Inc to consistently monitor and improve its operational efficiency to maintain or improve its operating ROA in the future.