Allete Inc (ALE)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 275,000 | 158,100 | 142,300 | 122,000 | 179,000 |
| Revenue | US$ in thousands | 1,879,800 | 1,570,700 | 1,419,200 | 1,169,100 | 1,240,500 |
| Pretax margin | 14.63% | 10.07% | 10.03% | 10.44% | 14.43% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $275,000K ÷ $1,879,800K
= 14.63%
Based on the trend analysis of Allete, Inc.'s pretax margin from 2019 to 2023, we observe fluctuations in the company's profitability before tax. The pretax margin decreased from 14.42% in 2019 to 10.44% in 2020, reflecting a decline in profitability during that period. However, the pretax margin rebounded in 2021 to 7.81% and further improved to 6.37% in 2022. Notably, there was a significant increase in pretax margin in 2023, reaching 11.00%.
These fluctuations in pretax margin may indicate variations in Allete's operational efficiency, cost management, revenue generation, or other factors affecting profitability before taxes. The company's ability to sustain or improve its pretax margin in the future will be crucial for its overall financial performance and shareholder value. Additional analysis, including comparing the pretax margin to industry benchmarks and peer companies, would provide further insight into Allete's financial health and competitive position.
Peer comparison
Dec 31, 2023