Allete Inc (ALE)

Financial leverage 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
Total assets	US$ in thousands	6,754,300	6,737,200	6,661,300	6,604,600	6,656,400	6,644,800	6,567,900	6,704,500	6,845,600	6,858,000	6,839,000	6,556,000	6,422,300	6,332,200	6,293,300	6,274,500	6,084,600	5,878,500	5,760,400	5,619,500
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
Financial leverage ratio		2.37	2.38	2.36	2.34	2.37	2.38	2.40	2.47	2.54	2.56	2.55	2.68	2.67	2.71	2.71	2.70	2.65	2.58	2.54	2.47

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,754,300K ÷ $2,848,000K
= 2.37

The financial leverage ratio of Allete Inc has shown a fluctuating trend over the past few years. Starting from March 31, 2020, the ratio stood at 2.47 and gradually increased to a peak of 2.71 by June 30, 2021. Following this peak, the ratio started to stabilize around the range of 2.55 to 2.70 up to March 31, 2023.

However, from June 30, 2023, the ratio began to decline, reaching a low of 2.34 by March 31, 2024. Subsequently, there was a slight increase in the ratio by June 30, 2024, to 2.36, followed by a minor fluctuation in the next few quarters, hovering around 2.38 and 2.37 by the end of December 31, 2024.

Overall, the financial leverage ratio of Allete Inc indicates that the company's reliance on debt to finance its operations has fluctuated over the years, reflecting changing levels of financial risk and debt in its capital structure.