Allegro Microsystems Inc (ALGM)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Dec 23, 2022	Sep 30, 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
Gross profit (ttm)	US$ in thousands	321,527	364,921	417,534	491,375	574,554	604,370	613,136	596,227	570,299	549,232	525,012	488,915	461,164	431,674	410,775	392,903	365,229	327,763	289,916	273,049
Revenue (ttm)	US$ in thousands	725,006	772,763	849,875	937,993	1,049,367	1,078,231	1,072,036	1,045,110	1,004,483	972,439	941,403	893,113	842,076	798,285	768,674	743,489	721,309	664,348	591,207	590,703
Gross profit margin		44.35%	47.22%	49.13%	52.39%	54.75%	56.05%	57.19%	57.05%	56.78%	56.48%	55.77%	54.74%	54.77%	54.08%	53.44%	52.85%	50.63%	49.34%	49.04%	46.22%

March 31, 2025 calculation

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

Allegro Microsystems Inc's gross profit margin has shown a generally increasing trend over the period from December 31, 2020, to March 31, 2023, reaching a peak of 57.19% on September 30, 2023. This indicates the company was able to effectively manage its cost of goods sold relative to revenue during this period.

However, starting from December 31, 2023, the gross profit margin began to decline, dropping to 44.35% on March 31, 2025. This could signal potential challenges in controlling production costs or pricing pressures on the company's products.

It is essential for Allegro Microsystems Inc to closely monitor and take proactive measures to address any factors impacting its gross profit margin to ensure sustainable profitability in the long run.