Allete Inc (ALE)

Solvency ratios

	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
Debt-to-assets ratio	0.25	0.25	0.26	0.26	0.24	0.24	0.23	0.25	0.27	0.26	0.26	0.26	0.26	0.27	0.24	0.25	0.26	0.27	0.29	0.29
Debt-to-capital ratio	0.37	0.38	0.38	0.39	0.38	0.38	0.37	0.41	0.42	0.41	0.42	0.42	0.41	0.41	0.38	0.38	0.39	0.39	0.41	0.41
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
Financial leverage ratio	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	2.46	2.39	2.35	2.37

The solvency ratios of Allete, Inc. provide insights into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio remained relatively stable around 0.27 in the most recent quarters, indicating that a significant portion of the company's assets are funded by debt.

The debt-to-capital ratio, which considers the proportion of debt in the company's capital structure, also remained consistent at approximately 0.39 to 0.40. This suggests that Allete relies on debt for about 39% to 40% of its overall capital.

The debt-to-equity ratio, showing the amount of debt relative to shareholders' equity, ranged from 0.64 to 0.80. The ratios indicate that Allete has a moderate to high level of financial leverage, with debt financing constituting between 64% and 80% of its equity.

The financial leverage ratio, measuring the company's total assets relative to shareholders' equity, varied from 2.37 to 2.68. This suggests that for every dollar of equity, Allete has between $2.37 and $2.68 in total assets, indicating a moderate degree of leverage.

Overall, Allete's solvency ratios reflect a consistent reliance on debt to finance its operations and investments. While the company's leverage is within manageable levels, continuous monitoring of these ratios is essential to ensure long-term financial stability and sustainability.

Coverage ratios

	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
Interest coverage	4.40	4.17	3.25	3.04	3.10	3.38	3.36	3.32	3.06	2.59	2.80	2.66	2.86	3.30	3.20	3.47	3.76	3.85	3.82	3.74

Interest coverage measures a company's ability to pay its interest expenses on outstanding debt. Allete, Inc.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 1.95 to 2.61. A ratio above 1 indicates that the company generates enough operating income to cover its interest payments.

The trend in Allete's interest coverage shows that the company has consistently maintained a healthy ability to meet its interest obligations. However, the slight decrease in Q1 2023 compared to previous quarters could suggest a potential decrease in the company's ability to cover interest expenses. It is important for investors and creditors to continue monitoring this ratio to ensure the company's long-term financial stability.