Allegro Microsystems Inc (ALGM)

Fixed asset turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 23, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	1,043,668	1,070,478	1,067,931	1,030,581	972,710	905,391	843,434	799,845	768,055	741,851	710,474	653,311
Property, plant and equipment	US$ in thousands	321,175	325,822	312,047	285,200	263,099	232,076	219,240	214,808	210,028	207,705	198,069	196,993	192,393	214,372	217,901
Fixed asset turnover		3.25	3.29	3.42	3.61	3.70	3.90	3.85	3.72	3.66	3.57	3.59	3.32

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,043,668K ÷ $321,175K
= 3.25

Fixed asset turnover is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.

Looking at Allegro Microsystems Inc's fixed asset turnover ratio over the past few quarters, we observe a fluctuating trend. The ratio has ranged from 3.25 to 3.90 over the last five quarters. The highest ratio was recorded in March 2023 at 3.90, which means that the company generated $3.90 in revenue for every dollar of fixed assets during that period.

The ratio saw a slight decline in the subsequent quarters but remained relatively consistent above 3.0, indicating that Allegro Microsystems Inc has been efficiently utilizing its fixed assets to generate revenue. However, it's worth noting that there was a significant decrease in the ratio in March 2021 (3.32), which could be a point of concern and may warrant further investigation into the company's asset management efficiency during that period.

Overall, the trend in Allegro Microsystems Inc's fixed asset turnover ratios suggests that the company has been effectively leveraging its fixed assets to generate revenue, but analysts should continue monitoring this metric to ensure sustained operational efficiency.