Allete Inc (ALE)

Debt-to-capital 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 stockholders’ equity US$ in thousands 2,848,000 2,809,600 2,691,900 2,404,300 2,294,600
Debt-to-capital ratio 0.37 0.37 0.38 0.42 0.41

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,704,700K ÷ ($1,704,700K + $2,848,000K)
= 0.37

The debt-to-capital ratio of Allete Inc has shown a slight fluctuation over the past five years. Starting at 0.41 as of December 31, 2020, it increased to 0.42 by the end of 2021, before decreasing to 0.38 by the end of 2022. Subsequently, the ratio further decreased to 0.37 for both 2023 and 2024.

This trend indicates a moderate level of debt relative to the company's total capital structure. A decreasing trend in the debt-to-capital ratio suggests that Allete Inc may be gradually reducing its reliance on debt financing, which can be a positive sign for investors and creditors. However, it's essential to consider other financial metrics and market factors to gain a holistic understanding of the company's financial health and performance.