Allegro Microsystems Inc (ALGM)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	194,606	245,282	281,027	267,062	211,209	173,443	140,601	120,878	140,598	127,483	52,648	24,985
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
Pretax margin		18.65%	22.91%	26.32%	25.91%	21.71%	19.16%	16.67%	15.11%	18.31%	17.18%	7.41%	3.82%

March 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $194,606K ÷ $1,043,668K
= 18.65%

Allegro Microsystems Inc's pretax margin has shown fluctuations over the past few quarters. The pretax margin decreased from 22.91% in December 2023 to 18.65% in March 2024. This decline may indicate a decrease in operating efficiency or an increase in expenses relative to revenue during this period.

However, the pretax margin reached its peak at 26.32% in September 2023, indicating a period of strong profitability for the company. The consistent performance above 15% in the previous quarters demonstrates the company's ability to generate a significant level of pre-tax profit compared to its total revenue.

It is essential for Allegro Microsystems Inc to closely monitor its pretax margin and identify the factors contributing to the fluctuations to make informed decisions regarding cost management, pricing strategies, and overall profitability in the future.