Allegro Microsystems Inc (ALGM)

Gross profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Gross profit	US$ in thousands	574,529	546,079	407,460	278,902
Revenue	US$ in thousands	1,043,670	972,297	768,005	579,037
Gross profit margin		55.05%	56.16%	53.05%	48.17%

March 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $574,529K ÷ $1,043,670K
= 55.05%

The gross profit margin of Allegro Microsystems Inc has shown a fluctuating trend over the past four years. It increased from 48.17% in March 2021 to 53.05% in March 2022, indicating an improvement in the company's ability to generate profit from its core operations. However, in the subsequent year, the gross profit margin decreased slightly to 56.16%, before dropping again to 55.05% in March 2024.

Overall, the average gross profit margin over the four-year period is 53.36%. This suggests that the company has been able to maintain relatively healthy levels of profitability in relation to its cost of goods sold. However, the fluctuations in the margin raise concerns about the consistency of Allegro Microsystems Inc's cost management and pricing strategies, which may impact its overall financial performance in the long run.