Allete Inc (ALE)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,809,600	2,691,900	2,404,300	2,294,600	2,231,900
ROE		8.79%	7.03%	7.04%	7.21%	8.32%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $247,100K ÷ $2,809,600K
= 8.79%

Allete, Inc.'s Return on Equity (ROE) has shown a fluctuating trend over the past five years, ranging from 7.01% in 2021 to 8.79% in 2023. The ROE indicates the company's ability to generate profits from shareholders' equity. The recent increase in ROE to 8.79% in 2023 suggests a positive trend in the company's profitability and efficient use of equity to generate earnings. However, the ROE figures for the previous years demonstrate some variability in the company's performance in utilizing shareholders' equity. Further analysis of the company's financial performance and strategic initiatives would be necessary to understand the factors influencing these fluctuations in ROE.