Allegro Microsystems Inc (ALGM)

Number of days of payables

		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
Payables turnover		18.77	17.38	9.57	8.63	10.11	11.15	13.73	16.23	17.31	14.88	18.62	14.07
Number of days of payables	days	19.44	21.00	38.16	42.29	36.11	32.74	26.58	22.49	21.09	24.52	19.60	25.94

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 18.77
= 19.44

The number of days of payables for Allegro Microsystems Inc has shown some fluctuations over the past several quarters. The trend indicates that the company has been managing its payables efficiently, with a gradual decrease from 25.94 days at the end of March 2021 to 19.44 days at the end of March 2024. This implies that, on average, the company takes approximately 19.44 days to pay its suppliers.

A lower number of days of payables suggests that Allegro Microsystems Inc is able to settle its outstanding payments more quickly, potentially indicating strong liquidity and favorable relationships with its suppliers. The decreasing trend in the number of days of payables could also be a positive sign of effective working capital management, as the company may be optimizing its cash flow by paying its obligations promptly.

Overall, a decreasing trend in the number of days of payables for Allegro Microsystems Inc reflects a potential improvement in its financial health and operational efficiency. It is essential for investors and stakeholders to continue monitoring this ratio as part of a comprehensive analysis of the company's financial performance and liquidity management.