Allete Inc (ALE)

Debt-to-capital 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 stockholders’ equity US$ in thousands 2,848,000 2,831,200 2,821,700 2,823,000 2,809,600 2,786,600 2,734,100 2,715,500 2,691,900 2,682,600 2,680,400 2,449,300 2,404,300 2,340,000 2,322,600 2,320,700 2,294,600 2,281,000 2,265,700 2,271,100
Debt-to-capital ratio 0.37 0.38 0.38 0.39 0.37 0.38 0.38 0.39 0.38 0.38 0.37 0.41 0.42 0.41 0.42 0.42 0.41 0.41 0.38 0.38

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 relatively consistent fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio has ranged between 0.37 to 0.42 during this period, indicating that debt makes up around 37% to 42% of Allete Inc's capital structure.

Overall, the trend of the debt-to-capital ratio suggests that Allete Inc has maintained a moderate level of debt relative to its capital over the years, without significant spikes or declines. This indicates a balanced approach to financing its operations and investments, potentially reflecting a prudent financial management strategy.

It is worth noting that a debt-to-capital ratio of around 0.38 to 0.42 is generally considered reasonable for most companies, as it signifies a healthy mix of debt and equity in the capital structure. However, it is essential to analyze this ratio in conjunction with other financial metrics and factors to gain a more comprehensive understanding of Allete Inc's overall financial health and risk profile.