Allegro Microsystems Inc (ALGM)

Pretax margin

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 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 -50,233 -6,256 109,906 194,606 245,282 281,027 267,062 211,209 173,443 140,601 120,878 140,598 127,483 52,648 24,985
Revenue (ttm) US$ in thousands 737,693 810,951 933,063 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 -6.81% -0.77% 11.78% 18.65% 22.91% 26.32% 25.91% 21.71% 19.16% 16.67% 15.11% 18.31% 17.18% 7.41% 3.82%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-50,233K ÷ $737,693K
= -6.81%

Allegro Microsystems Inc's pretax margin has shown varying performance over the periods analyzed. The pretax margin started at a modest 3.82% as of June 30, 2021, but improved steadily to reach 26.32% by September 30, 2023. This significant increase indicates efficient cost management and revenue generation strategies during this period. However, the pretax margin declined to 11.78% as of June 30, 2024, and turned negative, standing at -6.81% by December 31, 2024.

The declining trend in the latter periods suggests potential challenges in controlling costs and maintaining profitability. Further analysis would be necessary to understand the reasons behind the decrease in pretax margin and to determine the actions needed to improve the company's financial performance.