Allegro Microsystems Inc (ALGM)

Working capital 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
Total current assets US$ in thousands 483,036 495,627 523,560 490,283 572,213 549,496 714,896 700,304 665,829 619,952 619,952 545,485 545,485 529,034 511,692 469,192 445,914 452,527 430,564 378,530
Total current liabilities US$ in thousands 112,261 100,912 124,008 105,537 117,908 120,187 134,241 153,545 165,325 137,228 137,228 112,754 112,754 111,804 104,223 100,841 88,416 119,033 116,674 89,119
Working capital turnover 1.96 1.96 2.13 2.44 2.31 2.51 1.85 1.91 2.01 2.01 1.95 2.06 1.95 1.91 1.89 2.02 2.02 1.99 1.88 2.04

March 31, 2025 calculation

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

The working capital turnover ratio of Allegro Microsystems Inc has fluctuated over the past years, indicating varying efficiencies in its management of working capital.

From December 2020 to December 2022, the working capital turnover ranged from 1.88 to 2.06, suggesting a stable utilization and efficiency in converting working capital into sales revenue during this period.

However, there was a slight decrease in the ratio in the first quarter of 2023 (1.91), which improved slightly by the end of June 2023 (1.91). This may imply some challenges in managing the working capital efficiently during that period.

The ratio significantly increased to 2.51 by the end of December 2023, reflecting a notable improvement in the efficiency of working capital management. This high ratio may suggest that Allegro Microsystems Inc effectively utilized its working capital to generate sales revenue during that period.

Subsequently, the working capital turnover ratio decreased from March 2024 to December 2024, fluctuating between 1.96 and 2.44. These fluctuations may indicate changes in the company's working capital management strategies or variations in sales volume during that period.

Overall, while there have been fluctuations in the working capital turnover ratio of Allegro Microsystems Inc, the company has generally demonstrated efficiency in utilizing its working capital to generate sales revenue, with some periods showing stronger performance than others. The trend in the ratio can provide insights into the company's working capital management effectiveness and operational efficiency.