Allete Inc (ALE)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	1,704,700	1,679,900	1,648,200	1,763,200	1,593,200
Total assets	US$ in thousands	6,754,300	6,656,400	6,845,600	6,422,300	6,084,600
Debt-to-assets ratio		0.25	0.25	0.24	0.27	0.26

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,704,700K ÷ $6,754,300K
= 0.25

The debt-to-assets ratio for Allete Inc has remained relatively stable over the past five years, ranging between 0.24 and 0.27. This ratio indicates that, on average, around 25-27% of the company's total assets are financed by debt, while the remaining portion is covered by equity. A lower debt-to-assets ratio generally signifies a lower level of financial risk and indicates that the company relies more on equity financing. Allete Inc's consistent and moderate debt-to-assets ratio suggests a balanced capital structure and efficient management of its debt levels relative to its total assets.