Allegro Microsystems Inc (ALGM)

Operating 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
Operating income (ttm)	US$ in thousands	-19,802	32,096	68,823	137,671	219,047	243,451	272,393	265,106	254,198	250,932	200,041	164,662	140,429	119,145	136,650	125,849	66,020	39,868	12,158	11,615
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
Operating profit margin		-2.73%	4.15%	8.10%	14.68%	20.87%	22.58%	25.41%	25.37%	25.31%	25.80%	21.25%	18.44%	16.68%	14.93%	17.78%	16.93%	9.15%	6.00%	2.06%	1.97%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-19,802K ÷ $725,006K
= -2.73%

Allegro Microsystems Inc's operating profit margin has shown fluctuations over the provided period, ranging from negative to positive figures. The margin improved significantly from December 31, 2020, where it stood at 1.97%, to reach a peak of 25.80% on December 31, 2022.

However, starting from March 31, 2023, the operating profit margin began to decline consistently, dropping to -2.73% by March 31, 2025. This negative margin indicates that the company's operating expenses exceeded its gross profit during this period.

Overall, it is essential for Allegro Microsystems Inc to closely monitor and manage its operating expenses and revenue generation to maintain a healthy and sustainable operating profit margin over time.