Allegro Microsystems Inc (ALGM)

Payables turnover

		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 23, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Cost of revenue (ttm)	US$ in thousands	598,255	635,918	648,109	675,181	654,212	598,808	564,316	568,633	556,778	557,723	559,700	516,370	508,871	542,957	488,290
Payables	US$ in thousands	39,685	50,245	35,346	35,964	37,633	62,603	65,382	56,256	49,945	40,620	34,492	29,836	34,189	29,158	34,704
Payables turnover		15.08	12.66	18.34	18.77	17.38	9.57	8.63	10.11	11.15	13.73	16.23	17.31	14.88	18.62	14.07

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $598,255K ÷ $39,685K
= 15.08

The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its suppliers during a certain period.

For Allegro Microsystems Inc, the payables turnover has shown fluctuation over the specified periods. The data indicates that in June 2021, Allegro Microsystems Inc had a payables turnover of 14.07, which increased to 18.62 by September 2021. The ratio then slightly decreased to 14.88 by December 2021, before rising to 17.31 in March 2022.

However, there was a noticeable decline in payables turnover to 8.63 by June 2023, indicating a potential delay in payments to suppliers. The ratio recovered somewhat to 17.38 by December 2023, suggesting that the company was able to catch up on its payables.

Overall, the payables turnover ratio for Allegro Microsystems Inc has displayed variability, potentially signaling fluctuations in the company's payment practices and supplier relationships over the analyzed periods. It's important to further assess the reasons behind these changes to understand the company's liquidity management and relationships with suppliers.