3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
ALLETE's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was -13.94%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for ALLETE's 3-Year ROIIC % or its related term are showing as below:
ALE's 3-Year ROIIC % is ranked worse than 83.07% of 502
companies
in the Utilities - Regulated industry
Industry Median: 4.045
vs ALE: -13.94
ALLETE 3-Year ROIIC % Historical Data
The historical data trend for ALLETE's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Diversified subindustry, ALLETE's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ALLETE's 3-Year ROIIC % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ALLETE's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where ALLETE's 3-Year ROIIC % falls into.
ALLETE 3-Year ROIIC % Calculation
ALLETE's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 156.49659 (Dec. 2023) - 199.71615 (Dec. 2020) )
/
( 6410.2 (Dec. 2023) - 6100.1 (Dec. 2020) )
=
-43.21956
/
310.1
=
-13.94%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
ALLETE (NYSE:ALE) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
ALLETE 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of ALLETE's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
ALLETE Inc is a provider of competitively-priced energy in America's Upper Midwest region and invests in transmission infrastructure and other energy-centric businesses. The company's two reportable segments are 1) Regulated Operations includes the company's regulated utilities, Minnesota Power and SWL&P, as well as investment in ATC, a Wisconsin-based regulated utility that owns and maintains electric transmission assets in portions of Wisconsin, Michigan, Minnesota and Illinois. 2) ALLETE Clean Energy focuses on developing, acquiring, and operating clean and renewable energy projects.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ALE has been successfully added to your 