Allegro Microsystems Inc (ALGM)

Gross profit margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Gross profit	US$ in thousands	321,527	574,529	546,079	407,460	278,902
Revenue	US$ in thousands	725,006	1,049,370	973,653	768,674	591,207
Gross profit margin		44.35%	54.75%	56.09%	53.01%	47.18%

March 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $321,527K ÷ $725,006K
= 44.35%

Allegro Microsystems Inc has seen fluctuations in its gross profit margin over the five-year period from March 31, 2021, to March 31, 2025. The company's gross profit margin increased from 47.18% in March 2021 to 56.09% in March 2023, reflecting an improvement in its ability to generate profits from its core business activities.

However, in the following years, Allegro Microsystems experienced a slight decline in its gross profit margin, dropping to 54.75% in March 2024 and further decreasing to 44.35% in March 2025. This downward trend may indicate challenges such as rising production costs, pricing pressures, or changes in product mix that have impacted the company's profitability.

It is essential for Allegro Microsystems to closely monitor and analyze the factors influencing its gross profit margin to address any underlying issues and sustain its profitability in the competitive market environment.