Allegro Microsystems Inc (ALGM)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|
| Gross profit margin | 55.05% | 56.16% | 53.05% | 48.17% |
| Operating profit margin | 18.80% | 20.91% | 17.79% | 2.10% |
| Pretax margin | 18.65% | 21.72% | 18.31% | -0.28% |
| Net profit margin | 14.63% | 19.27% | 15.55% | 3.10% |
Allegro Microsystems Inc's profitability ratios have shown varying trends over the past four years. The gross profit margin has ranged from 48.17% in 2021 to 56.16% in 2023, with a current value of 55.05% as of March 31, 2024, indicating that the company effectively manages its production costs to generate profits.
The operating profit margin, representing the company's efficiency in managing its operating expenses, has fluctuated from 2.10% in 2021 to 20.91% in 2023, with the current value standing at 18.80% as of March 31, 2024, suggesting strong operational performance.
The pretax margin, a measure of profitability before accounting for taxes, has shown a similar pattern, ranging from -0.28% in 2021 to 21.72% in 2023, with the latest value at 18.65% as of March 31, 2024, reflecting the company's ability to generate profits before tax obligations.
Lastly, the net profit margin, indicating the company's bottom-line profitability after all expenses, has varied from 3.10% in 2021 to 19.27% in 2023, with the current value at 14.63% as of March 31, 2024. This suggests that Allegro Microsystems Inc has been able to retain a reasonable portion of its revenue as net income.
Overall, while there have been fluctuations in profitability ratios over the years, Allegro Microsystems Inc has generally maintained healthy levels of profitability, as indicated by the gross, operating, pretax, and net profit margins.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.82% | 17.21% | 15.31% | 1.63% |
| Return on assets (ROA) | 9.98% | 15.86% | 13.38% | 2.40% |
| Return on total capital | 14.88% | 21.56% | 18.85% | 0.36% |
| Return on equity (ROE) | 13.51% | 19.40% | 16.26% | 3.06% |
Allegro Microsystems Inc's profitability ratios indicate a positive trend over the past four years.
1. Operating return on assets (Operating ROA) has shown a slight decline from 17.21% in 2023 to 12.82% in 2024, but it remains relatively strong, indicating the company's ability to generate operating income from its assets.
2. Return on assets (ROA) has also decreased from 15.86% in 2023 to 9.98% in 2024. Despite the decline, the ROA figures for the company are consistently above average, reflecting its efficiency in generating profits relative to its total assets.
3. Return on total capital has shown a similar decreasing trend, from 21.56% in 2023 to 14.88% in 2024. This ratio measures the efficiency of the company in generating returns for both debt and equity providers.
4. Return on equity (ROE) has also experienced a gradual decrease from 19.40% in 2023 to 13.51% in 2024. While the ROE has declined, the current figure is still relatively strong, signaling that the company is effectively utilizing shareholder's equity to generate profits.
Overall, while the profitability ratios for Allegro Microsystems Inc have decreased in the most recent year, the company continues to exhibit solid profitability metrics compared to its past performance and industry peers.