Allegro Microsystems Inc (ALGM)

Fixed asset turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Dec 23, 2022	Sep 30, 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
Revenue (ttm)	US$ in thousands	725,006	772,763	849,875	937,993	1,049,367	1,078,231	1,072,036	1,045,110	1,004,483	972,439	941,403	893,113	842,076	798,285	768,674	743,489	721,309	664,348	591,207	590,703
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	285,200	263,099	232,076	232,076	233,242	219,240	229,966	226,077	223,627	215,123	214,432	192,393	214,372
Fixed asset turnover		—	—	—	—	—	—	—	3.66	3.82	4.19	4.06	3.83	3.84	3.47	3.40	3.32	3.35	3.10	3.07	2.76

March 31, 2025 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. It indicates how efficiently a company is utilizing its fixed assets to generate sales.

Looking at the data for Allegro Microsystems Inc, we observe a steady increase in the fixed asset turnover ratio over the analyzed period. The ratio has improved from 2.76 on December 31, 2020, to a peak of 4.19 on December 31, 2022. This upward trend suggests that Allegro Microsystems has been more effective in generating revenue from its fixed assets over time.

The improvement in the fixed asset turnover ratio may indicate enhanced operational efficiency, effective asset utilization, or potentially investments in productive assets. A higher fixed asset turnover ratio generally signifies that the company is efficiently utilizing its fixed assets to generate sales, which can be well-received by investors and creditors as a positive indicator of operational performance.

The ratio of 3.66 on June 30, 2023, shows a slight decrease from the peak, but it is important to monitor the ratio over time to assess if this is a temporary fluctuation or a trend. The absence of data from the September 30, 2023, period onwards highlights the importance of ongoing monitoring.

In summary, the trend of increasing fixed asset turnover for Allegro Microsystems Inc indicates improved efficiency in utilizing its fixed assets to generate sales revenue, which could suggest positive operational performance and effective asset management.