Allegro Microsystems Inc (ALGM)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,043,668	1,070,478	1,067,931	1,030,581	972,710	905,391	843,434	799,845	768,055	741,851	710,474	653,311
Receivables	US$ in thousands	118,508	114,324	118,947	121,506	141,787	128,127	119,080	121,633	114,615	105,946	97,824	101,500	93,332	87,487	—
Receivables turnover		8.81	9.36	8.98	8.48	6.86	7.07	7.08	6.58	6.70	7.00	7.26	6.44

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,043,668K ÷ $118,508K
= 8.81

The receivables turnover ratio measures how efficiently a company is able to collect payment on its credit sales within a specific period. A higher receivables turnover ratio indicates a more efficient collection process.

Analyzing Allegro Microsystems Inc's receivables turnover over the provided periods, we observe fluctuations in the ratio. The ratio has ranged between 6.44 and 9.36, with the highest ratio of 9.36 recorded in December 2023 and the lowest of 6.44 in June 2021.

The trend shows some variability over time, possibly indicating changes in the company's credit policies, customer payment behavior, or sales volume. It is noteworthy that a higher turnover ratio generally reflects better liquidity and a shorter collection period, implying effective management of accounts receivable.

Overall, monitoring the receivables turnover ratio over time can provide insights into Allegro Microsystems Inc's efficiency in managing its accounts receivable and its ability to convert credit sales into cash.