Allegro Microsystems Inc (ALGM)

Receivables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	725,006	1,049,370	973,653	768,674	591,207
Receivables	US$ in thousands	84,598	125,168	130,477	120,738	94,848
Receivables turnover		8.57	8.38	7.46	6.37	6.23

March 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $725,006K ÷ $84,598K
= 8.57

The receivables turnover ratio for Allegro Microsystems Inc has shown a consistent upward trend over the past five years. As of March 31, 2021, the ratio stood at 6.23 and gradually increased to 8.57 by March 31, 2025. This indicates that the company's ability to efficiently collect payments from its customers has improved over the years.

A higher receivables turnover ratio generally signifies that Allegro Microsystems Inc is collecting its accounts receivable more quickly, which is a positive indicator of effective credit management and liquidity. The increase in the ratio suggests that the company has been able to streamline its credit policies or has become more adept at managing its accounts receivable.

Overall, the rising trend in the receivables turnover ratio reflects positively on Allegro Microsystems Inc's financial health and indicates that the company's credit and collection processes are improving over time.