Allegro Microsystems Inc (ALGM)

Fixed asset turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	725,006	1,049,370	973,653	768,674	591,207
Property, plant and equipment	US$ in thousands	—	—	263,099	226,077	192,393
Fixed asset turnover		—	—	3.70	3.40	3.07

March 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $725,006K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for Allegro Microsystems Inc, we can observe a consistent improvement in the fixed asset turnover ratio over the years.

As of March 31, 2021, the fixed asset turnover ratio stood at 3.07, indicating that for every dollar of fixed assets, Allegro Microsystems generated $3.07 in sales. By March 31, 2022, this ratio had increased to 3.40, signaling a more efficient use of fixed assets to generate revenue.

Continuing this trend, Allegro Microsystems further improved its fixed asset turnover ratio to 3.70 by March 31, 2023. This suggests that the company is effectively utilizing its fixed assets to drive sales growth. However, it is worth noting that the data for March 31, 2024, and March 31, 2025, is unavailable (denoted as "—"), which limits the ability to assess the trend in more recent years.

Overall, the increasing trend in the fixed asset turnover ratio for Allegro Microsystems Inc indicates improving efficiency in utilizing fixed assets to generate revenue, which can be a positive indicator of operational performance and profitability.