Allegro Microsystems Inc (ALGM)

Total asset 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
Total assets	US$ in thousands	1,530,600	1,565,300	1,284,940	1,234,090	1,181,160	1,084,060	979,802	926,113	892,620	851,417	803,251	796,887	747,678	711,898	779,699
Total asset turnover		0.68	0.68	0.83	0.84	0.82	0.84	0.86	0.86	0.86	0.87	0.88	0.82

March 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,043,668K ÷ $1,530,600K
= 0.68

The total asset turnover ratio for Allegro Microsystems Inc has shown a fluctuating trend over the past several quarters. From Mar 31, 2024, to Dec 31, 2020, the total asset turnover ratio has ranged from 0.68 to 0.88, indicating the efficiency of the company in generating sales revenue from its total assets.

In general, a higher total asset turnover ratio signifies that the company is effectively utilizing its assets to generate sales. The ratios observed for Allegro Microsystems Inc fall within a relatively narrow range, suggesting a consistent level of efficiency in this aspect of the business operations.

It is notable that the total asset turnover ratio reached its peak at 0.88 in Dec 31, 2021, indicating a strong ability to generate sales relative to the size of assets invested during that period. However, there was a slight decline in the ratio in subsequent quarters, with the ratio being lower than the peak level but remaining above the lower bounds observed in previous periods.

Overall, the total asset turnover trend for Allegro Microsystems Inc showcases a relatively stable performance in utilizing its assets to generate revenues, albeit with some minor fluctuations in recent periods.