Allegro Microsystems Inc (ALGM)

Days of inventory on hand (DOH)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover		2.19	2.93	2.83	4.19	3.57
DOH	days	166.37	124.76	129.16	87.06	102.26

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.19
= 166.37

The days of inventory on hand (DOH) for Allegro Microsystems Inc have shown variability over the past five years.

In March 2021, the company had an inventory turnover rate of 102.26 days, indicating that on average, it took approximately 102 days to sell its entire inventory. This figure decreased to 87.06 days by March 2022, suggesting that the company managed to sell its inventory more efficiently during that period.

However, there was a significant increase in DOH to 129.16 days by March 2023, followed by a further rise to 124.76 days by March 2024. These higher DOH figures imply that Allegro Microsystems held onto its inventory for a longer period before being able to sell it, which may have tied up more capital and increased carrying costs.

By March 2025, the DOH had climbed to 166.37 days, indicating that the company took even longer to turn over its inventory. This prolonged holding period could potentially signify inefficiencies in inventory management or challenges in matching production with demand.

Overall, Allegro Microsystems Inc should closely monitor its inventory turnover and work towards optimizing its inventory management practices to ensure a healthy balance between stocking enough inventory to meet demand and preventing excess holding costs.