Allegro Microsystems Inc (ALGM)
Total asset 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 |
| Total assets | US$ in thousands | 1,530,600 | 1,181,160 | 892,620 | 747,678 |
| Total asset turnover | 0.68 | 0.82 | 0.86 | 0.77 |
March 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,043,670K ÷ $1,530,600K
= 0.68
Allegro Microsystems Inc's total asset turnover has shown a declining trend over the four-year period from March 31, 2021, to March 31, 2024. The total asset turnover ratio indicates the efficiency with which the company is generating sales revenue from its total assets. A lower total asset turnover ratio suggests that the company is less efficient in utilizing its assets to generate sales.
The ratio decreased from 0.77 in 2021 to 0.68 in 2024, indicating a decrease in the company's ability to generate sales from its assets during this period. This decline may be attributed to various factors such as inefficient asset utilization, changes in sales volume, or an increase in the size of the asset base without a corresponding increase in sales.
Further analysis and comparison with industry peers may help identify the specific reasons behind the decrease in total asset turnover and enable the company to take corrective measures to improve asset efficiency and overall performance.
Peer comparison
Mar 31, 2024