Allegro Microsystems Inc (ALGM)

Working capital 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 current assets	US$ in thousands	572,213	549,496	714,896	700,304	665,829	619,952	545,485	529,034	511,692	469,192	445,914	452,527	430,564	378,530	407,222
Total current liabilities	US$ in thousands	117,908	120,187	134,241	153,545	165,325	137,228	112,754	111,804	104,223	100,841	88,416	119,033	116,674	89,119	122,942
Working capital turnover		2.30	2.49	1.84	1.88	1.94	1.88	1.95	1.92	1.88	2.01	1.99	1.96

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,043,668K ÷ ($572,213K – $117,908K)
= 2.30

The working capital turnover ratio measures a company's efficiency in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its resources to generate sales.

For Allegro Microsystems Inc, the working capital turnover ratio has fluctuated over the periods provided. In the most recent period ending March 31, 2024, the ratio was 2.30, a decrease from the previous period's ratio of 2.49. This decrease could imply that Allegro Microsystems Inc is slightly less efficient in using its working capital to generate sales in the latest period.

Looking at the trend over multiple periods, we can see that the working capital turnover ratio has generally remained above 1.80, indicating that Allegro Microsystems Inc has been consistently efficient in utilizing its working capital to generate sales. The ratios have fluctuated between 1.84 and 2.49, showing some variability in efficiency levels.

Overall, Allegro Microsystems Inc has shown a relatively healthy working capital turnover ratio, suggesting good management of its working capital to support the company's sales activities. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance in this area.