Allegro Microsystems Inc (ALGM)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Operating income	US$ in thousands	196,244	203,307	136,650	12,158
Total assets	US$ in thousands	1,530,600	1,181,160	892,620	747,678
Operating ROA		12.82%	17.21%	15.31%	1.63%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $196,244K ÷ $1,530,600K
= 12.82%

Operating return on assets (operating ROA) is a key financial ratio that indicates a company's efficiency in generating operating profits from its assets. Allegro Microsystems Inc's operating ROA has shown some fluctuations over the past four years. In March 2024, the company's operating ROA was 12.82%, which decreased compared to the previous year's figure of 17.21%. This decline may indicate potential challenges in efficiently utilizing the company's assets to generate operating income.

However, it is important to note that the operating ROA of Allegro Microsystems Inc in 2024 is still higher than the figures reported in 2022 and 2021, which were 15.31% and 1.63% respectively. Despite the year-over-year decrease, the current operating ROA suggests that the company is still able to generate a reasonable level of operating profit relative to its total assets.

Further analysis beyond just the numerical data provided would be required to fully understand the factors influencing Allegro Microsystems Inc's operating ROA dynamics. Investors and stakeholders should delve deeper into the company's operational and financial performance to assess the sustainability and future prospects of its operating profitability.