Allete Inc (ALE)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	247,100	189,300	169,200	165,400	185,600
Total assets	US$ in thousands	6,656,400	6,845,600	6,422,300	6,084,600	5,482,800
ROA		3.71%	2.77%	2.63%	2.72%	3.39%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $247,100K ÷ $6,656,400K
= 3.71%

To analyze Allete, Inc.'s return on assets (ROA) over the five-year period, we observe a fluctuating trend. The ROA increased from 2.63% in 2021 to 2.77% in 2022, but then decreased to 2.86% in 2020 before dropping further to 3.71% in 2023. Despite this increase in 2023, the ROA remains below the level observed in 2019 when it was at 3.39%.

The variability in ROA indicates fluctuations in Allete, Inc.'s ability to generate profits relative to its assets. An increasing ROA generally indicates improved efficiency in asset utilization and profitability, while a decreasing ROA suggests a decline in these aspects.

It is important for stakeholders to delve deeper into the underlying factors driving these fluctuations in ROA to assess the company's overall financial performance and sustainability. Further analysis of Allete, Inc.'s financial statements, industry dynamics, and strategic initiatives would provide valuable insights into the company's profitability and asset utilization efficiency.