Allete Inc (ALE)

Solvency ratios

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
Debt-to-assets ratio 0.25 0.26 0.26 0.27 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
Debt-to-capital ratio 0.37 0.38 0.38 0.39 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
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
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

Allete Inc's solvency ratios indicate its ability to meet its long-term obligations. The Debt-to-assets ratio has remained relatively stable over the years, fluctuating within a narrow range of 0.23 to 0.27, suggesting that the company has effectively managed its debt levels in relation to its total assets.

The Debt-to-capital ratio also shows consistency, with slight fluctuations between 0.37 to 0.42. This indicates that Allete has been able to maintain an appropriate balance between debt and equity financing in its capital structure.

The Debt-to-equity ratio has shown a decreasing trend from 0.70 to 0.60 over the years, reflecting a reduction in the company's reliance on debt financing in relation to its equity. This may imply a strengthening of Allete's financial position and potentially lower financial risk.

The Financial leverage ratio has generally decreased from 2.70 to 2.37, indicating a reduction in the company's financial leverage and the associated risk. This trend suggests that the company has been managing its debt more effectively over the years.

Overall, based on the solvency ratios, Allete Inc appears to have a solid financial position with a balanced approach to debt and equity management, which may contribute to its long-term financial stability and sustainability.

Coverage ratios

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
Interest coverage 2.30 2.83 3.82 4.30 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

Allete Inc's interest coverage ratio measures its ability to cover interest expenses with operating income. The trend of Allete Inc's interest coverage ratio over the past few years shows some fluctuations.

From March 31, 2020, to December 31, 2021, the interest coverage ratio ranged between 2.66 and 3.30, indicating the company had sufficient operating income to cover its interest expenses. However, the ratio dipped to 2.59 on September 30, 2021, suggesting a slight decrease in the company's ability to cover its interest costs.

From March 31, 2022, to June 30, 2024, the interest coverage ratio improved steadily, reaching as high as 4.40 on December 31, 2023. This upward trend indicates that Allete Inc's ability to cover interest expenses strengthened during this period.

On December 31, 2024, the interest coverage ratio dropped to 2.30, which may raise some concerns about the company's ability to meet its interest obligations with its current operating income. However, it's important to note that interest coverage can vary based on a company's specific circumstances and the broader economic environment.

In conclusion, while there have been fluctuations in Allete Inc's interest coverage ratio over the years, the company has generally maintained a satisfactory ability to cover its interest expenses, with some periods of stronger performance than others.