Allegro Microsystems Inc (ALGM)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.35% | 54.75% | 56.09% | 53.01% | 47.18% |
| Operating profit margin | -2.73% | 19.96% | 20.88% | 17.78% | 3.00% |
| Pretax margin | -11.82% | 18.56% | 21.71% | 18.31% | -0.25% |
| Net profit margin | -10.07% | 14.55% | 19.24% | 15.53% | 3.04% |
Allegro Microsystems Inc's profitability ratios exhibit fluctuations over the five-year period under review. The gross profit margin has shown improvement from 47.18% in 2021 to 56.09% in 2023, indicating the company's ability to efficiently manage production costs and generate revenue. However, there was a slight decline to 44.35% in 2025, possibly signaling challenges in maintaining cost control.
In terms of operating profit margin, Allegro Microsystems experienced a significant increase from 3.00% in 2021 to 20.88% in 2023, reflecting improved operational efficiency. Nevertheless, in 2025, the margin turned negative at -2.73%, indicating potential operating losses during that period.
The pretax margin also saw fluctuations, with a notable growth from -0.25% in 2021 to 21.71% in 2023, suggesting better cost management and higher profitability before taxes. However, the margin decreased to -11.82% in 2025, indicating a significant decline in pre-tax profitability.
Lastly, the net profit margin of Allegro Microsystems displayed a positive trend from 3.04% in 2021 to 19.24% in 2023, showcasing the company's ability to efficiently manage expenses and generate profits. Nonetheless, the margin declined to -10.07% in 2025, reflecting a decrease in net profits.
In conclusion, while Allegro Microsystems showed improvements in profitability ratios up to 2023, the decline in margins in 2025 raises concerns about the company's ability to sustain profitability in the future.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.39% | 13.68% | 17.21% | 15.31% | 2.37% |
| Return on assets (ROA) | -5.14% | 9.98% | 15.86% | 13.38% | 2.40% |
| Return on total capital | 0.00% | 18.18% | 22.13% | 19.31% | 0.20% |
| Return on equity (ROE) | -7.84% | 13.51% | 19.40% | 16.26% | 3.06% |
Allegro Microsystems Inc's profitability ratios show fluctuating performance over the years.
- Operating return on assets (Operating ROA) improved significantly from 2.37% in March 2021 to 17.21% in March 2023, indicating that management has been more efficient in generating operating income from the company's assets. However, there was a slight decline to 13.68% by March 2024 and a significant decrease to -1.39% by March 2025, which may raise concerns about the company's operational efficiency.
- Return on assets (ROA) followed a similar pattern, increasing from 2.40% in March 2021 to 15.86% in March 2023 before dropping to 9.98% in March 2024 and turning negative at -5.14% in March 2025. This negative trend suggests that Allegro Microsystems Inc's overall profitability in relation to its total assets has deteriorated in the latest period.
- Return on total capital increased notably from 0.20% in March 2021 to 22.13% in March 2023, indicating an improvement in the company's ability to generate returns from its total capital employed. However, it dropped to 18.18% by March 2024 and reached 0.00% by March 2025, signaling potential challenges in capital allocation and management.
- Return on equity (ROE) showed a similar pattern, with an increase from 3.06% in March 2021 to 19.40% in March 2023 before declining to 13.51% in March 2024 and turning negative at -7.84% by March 2025. The negative ROE in the latest period indicates that Allegro Microsystems Inc's shareholders experienced a loss on their equity investments.
Overall, Allegro Microsystems Inc's profitability ratios reflect a mixed performance with periods of improvement followed by declines, highlighting the importance of monitoring and addressing key operational and financial factors impacting the company's profitability.