Allete(Ale) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for ALE

Report - net profit margin

This chart shows the historical trend of net profit margin for ALE compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', ALE's net profit margin was 11.9%, measuring the overall profitability of the company. Industry average for Power Generation in '2021' stood at 5.0%.
• In '2022', ALE's net profit margin was 12.0%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Power Generation in '2022' stood at -1.7%. Industry average declined by 6.7% from previous year.
• In '2023', ALE's net profit margin was 13.2%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Power Generation in '2023' stood at -20.3%. Industry average declined by 18.6% from previous year.
• In '2024', ALE's net profit margin was 11.7%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Power Generation in '2024' stood at 9.0%. Industry average increased by 29.3% compared to previous year.
Overall, ALE's net profit margin has remained generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.