Allete Inc (ALE)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	1,400,900	1,404,900	1,505,900	1,525,000
Total stockholders’ equity	US$ in thousands	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	2,231,900	2,207,800	2,205,000	2,198,700
Debt-to-equity ratio		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	0.63	0.64	0.68	0.69

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 exhibited a declining trend over the past eight quarters, indicating a gradual improvement in the company's leverage position. The ratio has decreased from 0.80 in Q1 2022 to 0.64 in Q4 2023. This indicates that Allete's reliance on debt funding in relation to equity has reduced, which suggests a stronger financial position as the company is financing a smaller portion of its assets through debt.

The decreasing trend in the debt-to-equity ratio signifies that Allete has been successful in managing its debt levels relative to its equity, which can enhance its financial stability and solvency. A lower debt-to-equity ratio implies lower financial risk and may be viewed positively by investors and creditors.

Despite the fluctuations across quarters, the general direction of the trend towards lower debt-to-equity ratios suggests that Allete has been gradually reducing its debt burden or increasing shareholder equity. This may reflect a prudent financial strategy aimed at maintaining a healthy balance between debt and equity financing.

Overall, based on the data provided, the declining debt-to-equity ratio of Allete, Inc. over the past eight quarters indicates an improving financial position and suggests that the company has been effectively managing its capital structure to achieve a more balanced and sustainable financial profile.