Allete Inc (ALE)

Debt-to-equity 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-equity ratio 0.60 0.62 0.62 0.63 0.60 0.61 0.62 0.65 0.61 0.62 0.60 0.68 0.73 0.70 0.72 0.71 0.69 0.70 0.61 0.62

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 of Allete Inc has been relatively stable over the past five years, ranging from 0.60 to 0.73. This ratio indicates that for every dollar of equity, the company has between $0.60 and $0.73 of debt.

Overall, a debt-to-equity ratio of around 0.60 to 0.70 suggests that Allete Inc has been operating with a moderate level of leverage. This could indicate a balanced capital structure, where the company is utilizing a mix of debt and equity to finance its operations and investments.

It is notable that the ratio slightly fluctuated throughout the period, but generally remained within a reasonable range. Investors and creditors typically view a stable debt-to-equity ratio positively, as it reflects a consistent approach to managing the company's financial obligations and capital structure.

However, it would be beneficial to further analyze the trend in profitability and cash flow of Allete Inc to assess the company's ability to service its debt obligations and leverage effectively.