Allegro Microsystems Inc (ALGM)

Gross profit margin

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 23, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Gross profit (ttm)	US$ in thousands	574,529	604,370	613,136	585,655	546,079	502,593	461,164	431,674	407,460	384,863	358,123	317,361
Revenue (ttm)	US$ in thousands	1,043,668	1,070,478	1,067,931	1,030,581	972,710	905,391	843,434	799,845	768,055	741,851	710,474	653,311
Gross profit margin		55.05%	56.46%	57.41%	56.83%	56.14%	55.51%	54.68%	53.97%	53.05%	51.88%	50.41%	48.58%

March 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $574,529K ÷ $1,043,668K
= 55.05%

The gross profit margin of Allegro Microsystems Inc has shown a general increasing trend over the past several quarters, indicating that the company has been able to effectively manage its cost of goods sold relative to its revenue. The margin has improved from approximately 48.58% in the second quarter of 2021 to 55.05% in the most recent quarter ending March 31, 2024. This suggests an enhancement in the company's pricing strategy, cost control measures, or production efficiency.

The upward trend in gross profit margin signifies that Allegro Microsystems Inc has been able to generate more gross profit for every dollar of sales, which is a positive indicator of the company's operational efficiency and profitability. Investors and stakeholders may view this sustained improvement in gross profit margin favorably, as it indicates that the company is effectively managing its costs and optimizing its pricing strategies to enhance profitability.