Allete Inc (ALE)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	1,704,700	1,743,700	1,746,000	1,772,400	1,679,900	1,686,100	1,685,900	1,755,500	1,648,200	1,653,000	1,595,600	1,669,400	1,763,200	1,649,400	1,664,600	1,652,400	1,593,200	1,608,000	1,381,000	1,399,900
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
Debt-to-assets ratio		0.25	0.26	0.26	0.27	0.25	0.25	0.26	0.26	0.24	0.24	0.23	0.25	0.27	0.26	0.26	0.26	0.26	0.27	0.24	0.25

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 of Allete Inc has remained relatively stable over the analyzed period, ranging between 0.23 and 0.27. This ratio indicates the proportion of the company's assets financed by debt, with a lower ratio typically viewed more positively as it suggests lower financial risk.

As per the provided data, Allete Inc's debt-to-assets ratio was at its lowest in June 2022 at 0.23, indicating a higher proportion of assets financed by equity. Conversely, the ratio increased to 0.27 in March 2024, suggesting a slight uptick in the usage of debt to finance assets.

Overall, the consistency in the range of the debt-to-assets ratio over the years indicates a balanced approach to capital structure management by Allete Inc. However, a closer examination of the company's specific debt levels and asset composition would provide further insights into its financial health and risk profile.