Allegro Microsystems Inc (ALGM)
Receivables turnover
| Mar 31, 2025 | 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 31, 2022 | Dec 23, 2022 | Sep 30, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 725,006 | 772,763 | 849,875 | 937,993 | 1,049,367 | 1,078,231 | 1,072,036 | 1,045,110 | 1,004,483 | 972,439 | 941,403 | 893,113 | 842,076 | 798,285 | 768,674 | 743,489 | 721,309 | 664,348 | 591,207 | 590,703 |
| Receivables | US$ in thousands | 84,598 | 83,805 | 76,985 | 67,147 | 125,168 | 118,228 | 123,438 | 125,431 | 130,477 | 134,214 | 128,127 | 124,545 | 119,080 | 124,966 | 120,738 | 107,431 | 99,119 | 103,113 | 94,848 | 88,860 |
| Receivables turnover | 8.57 | 9.22 | 11.04 | 13.97 | 8.38 | 9.12 | 8.68 | 8.33 | 7.70 | 7.25 | 7.35 | 7.17 | 7.07 | 6.39 | 6.37 | 6.92 | 7.28 | 6.44 | 6.23 | 6.65 |
March 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $725,006K ÷ $84,598K
= 8.57
The receivables turnover ratio for Allegro Microsystems Inc has shown fluctuating trends over the reported periods, ranging from a low of 6.23 to a high of 13.97. The ratio indicates how efficiently the company is collecting outstanding receivables from its customers within a specific time frame.
The increase in the receivables turnover ratio from 6.23 in March 2021 to 13.97 in June 2024 suggests that the company improved its efficiency in collecting receivables during this period. However, the ratio decreased to 11.04 in September 2024 and further to 8.57 by March 2025.
A high receivables turnover ratio generally indicates that the company is efficiently collecting payments from customers, which can be positive for cash flow management and working capital. Conversely, a decreasing ratio could imply issues with customer credit or collection processes, warranting further investigation.
It is essential for Allegro Microsystems Inc to monitor its receivables turnover ratio closely and evaluate the effectiveness of its credit policies and collection strategies to ensure optimal working capital management.
Peer comparison
Mar 31, 2025