Allete Inc (ALE)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,679,900	1,648,200	1,763,200	1,593,200	1,400,900
Total assets	US$ in thousands	6,656,400	6,845,600	6,422,300	6,084,600	5,482,800
Debt-to-assets ratio		0.25	0.24	0.27	0.26	0.26

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,679,900K ÷ $6,656,400K
= 0.25

The debt-to-assets ratio of Allete, Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 0.31 in 2021 to 0.27 in 2023, indicating a positive trend in the company's ability to finance its assets through debt.

A lower debt-to-assets ratio signifies that the company relies less on debt financing to acquire its assets, which can be seen as a positive indicator of financial stability and lower financial risk. Allete, Inc. has been successful in managing its debt levels relative to its total assets, which can provide a sense of security to creditors and investors.

Overall, the decreasing trend in the debt-to-assets ratio of Allete, Inc. suggests that the company has been effectively managing its debt and asset levels, potentially improving its financial health and stability over the years.