Allegro Microsystems Inc (ALGM)

Net profit margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	-73,010	152,697	187,357	119,407	17,953
Revenue	US$ in thousands	725,006	1,049,370	973,653	768,674	591,207
Net profit margin		-10.07%	14.55%	19.24%	15.53%	3.04%

March 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $-73,010K ÷ $725,006K
= -10.07%

Allegro Microsystems Inc's net profit margin has exhibited fluctuations over the past five years. In March 2021, the net profit margin stood at 3.04%, indicating that the company was generating approximately $0.03 in profit for every dollar of revenue. The margin significantly improved in the following years, reaching 15.53% in March 2022 and further increasing to 19.24% by March 2023. This trend suggests that Allegro Microsystems Inc was able to effectively control costs and increase profitability during this period.

However, in March 2024, the net profit margin decreased to 14.55%, indicating a slight dip in profitability compared to the previous year. The most concerning observation is noted in March 2025 when the net profit margin dropped to -10.07%, indicating that the company incurred a net loss during that period. This sharp decline may raise concerns about the company's operational efficiency and financial performance.

Overall, Allegro Microsystems Inc's net profit margin has shown variability over the years, with periods of strong profitability followed by significant declines. It is essential for the company to closely monitor its cost structure, revenue streams, and overall financial health to sustain or improve its net profit margin in the future.