Allete Inc (ALE)

Return on assets (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
Net income (ttm)	US$ in thousands	247,100	247,300	195,100	181,200	189,300	199,500	193,400	183,700	169,200	145,600	158,700	150,900	165,400	176,800	167,300	181,400	185,600	197,000	196,500	193,600
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
ROA		3.71%	3.72%	2.97%	2.70%	2.77%	2.91%	2.83%	2.80%	2.63%	2.30%	2.52%	2.40%	2.72%	3.01%	2.90%	3.23%	3.39%	3.73%	3.80%	3.71%

December 31, 2023 calculation

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

Based on the provided data, the return on assets (ROA) of Allete, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the ROA was 3.71%, slightly decreasing from the previous quarter at 3.72% in Q3 2023. Overall, the ROA has been relatively stable within the range of 2.70% to 3.72% over the past two years.

The trend indicates that Allete, Inc. has been able to effectively generate profit from its assets, with the ROA consistently above 2.5%. The recent increase in ROA in Q4 2023 may suggest improved efficiency in asset utilization or profitability.

It is important for the company to continue monitoring and managing its assets efficiently to sustain or further improve its return on assets, which is a key financial metric for evaluating the effectiveness of the company in generating profits relative to its total assets.