Allegro Microsystems Inc (ALGM)

Receivables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	1,043,670	972,297	768,005	579,037
Receivables	US$ in thousands	118,508	141,787	114,615	93,332
Receivables turnover		8.81	6.86	6.70	6.20

March 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,043,670K ÷ $118,508K
= 8.81

The receivables turnover ratio for Allegro Microsystems Inc has shown a positive trend over the past four years, indicating the company's ability to efficiently collect payments from its customers.

In the most recent fiscal year ending March 31, 2024, the receivables turnover ratio was 8.81, showing an improvement from the previous year's ratio of 6.86. This increase suggests that Allegro Microsystems managed to collect outstanding receivables more frequently throughout the year, potentially boosting cash flows and liquidity.

Comparing the data over the past four years, there has been a consistent upward trajectory in the receivables turnover ratio, reflecting the company's effectiveness in credit management and collection efforts. This trend signifies that Allegro Microsystems has been successful in converting its accounts receivable into cash at a faster pace, which is a positive indicator of the company's financial health and operational efficiency.

Overall, the increasing trend in receivables turnover for Allegro Microsystems Inc demonstrates effective management of accounts receivable and a strong focus on optimizing working capital management.