Allegro Microsystems Inc (ALGM)

Number of days of payables

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Payables turnover		18.74	9.75	17.31	13.46
Number of days of payables	days	19.47	37.45	21.09	27.12

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 18.74
= 19.47

The number of days of payables for Allegro Microsystems Inc has shown fluctuations over the past four years. As of March 31, 2024, the company took around 19.47 days on average to pay off its accounts payable. This represents a significant improvement from the previous year, where it took 37.45 days to settle payables.

Comparing the current figure to prior years, in March 2023, Allegro Microsystems took 21.09 days on average to pay its suppliers, which was shorter than the year before that, when it took 27.12 days. The decreasing trend indicates that the company has been managing its payables more efficiently, possibly by negotiating better payment terms with suppliers or improving internal processes.

Overall, a lower number of days of payables suggests that Allegro Microsystems Inc is paying its suppliers more promptly, which can improve relationships and potentially provide opportunities for discounts or favorable terms. Additionally, efficient payables management can positively impact the company's cash flow and liquidity position.