Allegro Microsystems Inc (ALGM)

Pretax margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before tax but after interest (EBT)	US$ in thousands	-85,696	194,797	211,346	140,746	-1,451
Revenue	US$ in thousands	725,006	1,049,370	973,653	768,674	591,207
Pretax margin		-11.82%	18.56%	21.71%	18.31%	-0.25%

March 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $-85,696K ÷ $725,006K
= -11.82%

Allegro Microsystems Inc's pretax margin has exhibited fluctuations over the past five years. The company reported a negative pretax margin of -0.25% as of March 31, 2021, indicating that its expenses exceeded its revenues before accounting for taxes. However, there was a substantial improvement in profitability in the following years, with the pretax margin increasing to 18.31% as of March 31, 2022, and further to 21.71% as of March 31, 2023.

In the subsequent year, Allegro Microsystems Inc's pretax margin slightly decreased to 18.56% as of March 31, 2024. This indicates that the company's profitability remained relatively stable, although slightly lower compared to the prior year. However, there was a notable decline in profitability in the most recent period, with the pretax margin dropping to -11.82% as of March 31, 2025. This negative pretax margin suggests that the company's expenses once again outpaced its revenues before taxation.

Overall, Allegro Microsystems Inc's pretax margin has shown variability, with periods of improvement and decline. It will be crucial for the company to closely monitor its cost structure and revenue generation to ensure sustainable profitability in the future.