Allete Inc (ALE)

Debt-to-equity 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-equity ratio 0.60 0.60 0.61 0.73 0.69

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,704,700K ÷ $2,848,000K
= 0.60

The debt-to-equity ratio for Allete Inc has shown a somewhat fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 0.69, indicating that the company had $0.69 of debt for every $1 of equity.

There was a slight increase in the ratio to 0.73 by December 31, 2021, suggesting a higher level of debt relative to equity. However, in the following years, the ratio showed a downward trend, reaching 0.60 by December 31, 2024. This decrease may imply a better position in terms of financial leverage, with the company relying less on debt financing compared to equity.

Overall, Allete Inc's debt-to-equity ratio has shown variability but seems to have improved over the years, signaling potential strengths in the company's capital structure and financial stability.