Allete Inc (ALE)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	2,809,600	2,691,900	2,404,300	2,294,600	2,231,900
Debt-to-equity ratio		0.60	0.61	0.73	0.69	0.63

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,679,900K ÷ $2,809,600K
= 0.60

The debt-to-equity ratio of Allete, Inc. has shown a decreasing trend over the past five years, indicating a favorable position in terms of its capital structure. In 2023, the ratio stands at 0.64, down from 0.71 in 2022 and 0.82 in 2021. This suggests that Allete has been reducing its reliance on debt financing in relation to equity, which is generally viewed positively by investors and creditors as it implies lower financial risk and greater financial stability. The company's ability to lower its debt levels and maintain a healthy balance between debt and equity signifies efficient financial management and a strengthened financial position.