Allegro Microsystems Inc (ALGM)
Total asset 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 |
| Total assets | US$ in thousands | 1,420,960 | 1,530,600 | 1,181,160 | 892,620 | 747,678 |
| Total asset turnover | 0.51 | 0.69 | 0.82 | 0.86 | 0.79 |
March 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $725,006K ÷ $1,420,960K
= 0.51
The total asset turnover ratio measures a company's efficiency in generating sales from its total assets. For Allegro Microsystems Inc, we observe fluctuations in this ratio over the past five years.
In March 2021, the total asset turnover was 0.79, indicating that the company generated $0.79 in sales for every dollar of assets. This ratio improved to 0.86 in March 2022, suggesting an increase in efficiency in asset utilization. However, in the following year, the ratio decreased to 0.82, showing a slight dip in asset turnover.
By March 2024, the total asset turnover experienced a more significant decline to 0.69, indicating a decrease in sales generated per unit of assets. The most recent data point in March 2025 shows a further decrease to 0.51, reflecting a substantial decline in asset efficiency.
Overall, the decreasing trend in Allegro Microsystems Inc's total asset turnover ratio over the years points towards a potential inefficiency in utilizing its assets to generate sales. It is essential for the company to address this trend by improving operational performance and optimizing asset utilization to enhance overall profitability and efficiency.
Peer comparison
Mar 31, 2025