Allete Inc (ALE)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	275,000	255,900	177,200	155,400	158,100	172,500	168,700	163,300	142,300	110,700	123,200	110,900	122,000	146,700	140,300	158,100	179,000	185,900	188,200	184,700
Revenue (ttm)	US$ in thousands	1,879,800	1,902,900	1,912,400	1,752,100	1,570,700	1,543,900	1,501,000	1,463,500	1,419,200	1,340,600	1,289,100	1,196,700	1,169,100	1,153,300	1,147,700	1,194,900	1,240,500	1,384,200	1,443,900	1,497,600
Pretax margin		14.63%	13.45%	9.27%	8.87%	10.07%	11.17%	11.24%	11.16%	10.03%	8.26%	9.56%	9.27%	10.44%	12.72%	12.22%	13.23%	14.43%	13.43%	13.03%	12.33%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $275,000K ÷ $1,879,800K
= 14.63%

The pretax margin of Allete, Inc. has shown fluctuations over the past eight quarters, ranging from a low of 5.51% in Q1 2023 to a high of 11.00% in Q4 2023. The pretax margin measures the company's ability to generate profits before taxes relative to its total revenues.

The increase in the pretax margin from Q1 2023 to Q4 2023 indicates a positive trend in the company's profitability. This improvement could be attributed to better cost management, increased revenue generation, or a combination of both factors.

Comparing the latest pretax margin of 11.00% in Q4 2023 to the same quarter in the prior year, Q4 2022, the company has shown significant growth, as the margin increased from 6.37% to 11.00%. This suggests that Allete, Inc. has achieved stronger profitability in the most recent quarter compared to the same period last year.

Overall, while there have been fluctuations in the pretax margin of Allete, Inc. over the past eight quarters, the company's performance has shown an improvement in generating profits before taxes in the most recent quarter, indicating positive momentum in its financial performance.