Allegro Microsystems Inc (ALGM)

Payables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	403,479	474,838	427,574	361,214	312,305
Payables	US$ in thousands	38,733	37,590	56,256	29,836	35,389
Payables turnover		10.42	12.63	7.60	12.11	8.82

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $403,479K ÷ $38,733K
= 10.42

Based on the data provided for Allegro Microsystems Inc, the payables turnover ratio has fluctuated over the years. The payables turnover ratio indicates how efficiently the company manages its payables by measuring the number of times a company pays off its average accounts payable balance during a specific period.

In March 2021, Allegro Microsystems Inc had a payables turnover ratio of 8.82, indicating that the company paid off its accounts payable approximately 8.82 times during that year. The ratio increased significantly to 12.11 by March 2022, suggesting that the company improved its payables management efficiency.

However, in March 2023, the payables turnover ratio dropped to 7.60, indicating a potential slowdown in the company's payables management. The ratio then increased again to 12.63 by March 2024, showing a strong improvement in managing payables efficiently.

By March 2025, the payables turnover ratio slightly decreased to 10.42, but overall, Allegro Microsystems Inc demonstrated effective management of its accounts payable over the years, with fluctuations that could be influenced by various factors such as changes in payment terms, supplier relationships, or operational changes.