Allegro Microsystems Inc (ALGM)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.57 | 8.38 | 7.46 | 6.37 | 6.23 | |
| DSO | days | 42.59 | 43.54 | 48.91 | 57.33 | 58.56 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.57
= 42.59
To analyze Allegro Microsystems Inc's Days Sales Outstanding (DSO) over the years, we can observe a decreasing trend. DSO decreased from 58.56 days as of March 31, 2021, to 42.59 days as of March 31, 2025. This indicates that the company is collecting its accounts receivable more efficiently over time.
The company's ability to collect payments from customers has improved steadily, with a significant drop in DSO from 2021 to 2025. A lower DSO signifies that Allegro Microsystems Inc is converting its sales into cash more quickly, which can positively impact its cash flow and liquidity position.
The decreasing trend in DSO suggests that the company has been managing its credit and collections effectively, resulting in faster conversion of credit sales into cash. This improvement in collection efficiency is a positive indicator of Allegro Microsystems Inc's financial health and operational effectiveness.
Peer comparison
Mar 31, 2025