Allete Inc (ALE)

Return on assets (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
Net income (ttm)	US$ in thousands	179,300	180,200	221,100	239,600	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
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
ROA		2.65%	2.67%	3.32%	3.63%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $179,300K ÷ $6,754,300K
= 2.65%

Over the analyzed period from March 31, 2020, to December 31, 2024, Allete Inc's return on assets (ROA) fluctuated. The downward trend from a high of 3.23% in March 2020 to a low of 2.30% in September 2021 indicates a decreasing efficiency in generating earnings from its assets. However, there was a notable improvement in ROA in the subsequent quarters, reaching a peak of 3.72% in September 2023. This upward trend signifies an enhanced ability to utilize the company's assets effectively to generate profits.

In the most recent periods of December 31, 2023, and December 31, 2024, the ROA decreased slightly to 3.71% and 2.65%, respectively. Despite the drop in the last quarter of 2024, the overall trend suggests that management has been successful in improving the company's profitability relative to its asset base. Monitoring the ROA can provide valuable insights into how efficiently Allete Inc is using its assets to generate earnings, which is essential for assessing the company's operational performance and financial health.