Allegro Microsystems Inc (ALGM)

Working capital 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 current assets US$ in thousands 483,036 572,213 665,829 511,692 430,564
Total current liabilities US$ in thousands 112,261 117,908 165,325 104,223 116,674
Working capital turnover 1.96 2.31 1.95 1.89 1.88

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $725,006K ÷ ($483,036K – $112,261K)
= 1.96

The working capital turnover ratio of Allegro Microsystems Inc has shown a fluctuating trend over the past five years. It increased from 1.88 in March 31, 2021, to 2.31 in March 31, 2024, signaling improved efficiency in managing its working capital. However, in the following year, the ratio dropped to 1.96 in March 31, 2025, indicating a potential slowdown in working capital efficiency. Overall, the company appears to be effectively utilizing its working capital to generate revenue, but it is important to monitor any further fluctuations to ensure sustainable operational performance.