Allegro Microsystems Inc (ALGM)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-85,696	-50,007	-6,034	110,120	194,797	245,467	281,187	280,175	271,157	262,288	202,445	160,542	140,710	121,024	140,746	127,640	52,803	25,137	-1,451	-709
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
Pretax margin		-11.82%	-6.47%	-0.71%	11.74%	18.56%	22.77%	26.23%	26.81%	26.99%	26.97%	21.50%	17.98%	16.71%	15.16%	18.31%	17.17%	7.32%	3.78%	-0.25%	-0.12%

March 31, 2025 calculation

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

Allegro Microsystems Inc's pretax margin has exhibited fluctuating trends over the past few years. The pretax margin was negative in the periods ending in December 2020, March 2021, September 2024, December 2024, and March 2025, indicating that the company had more expenses than revenues before tax during those periods.

However, there was a notable improvement in the pretax margin from June 2021 onwards, reaching its highest point of 26.99% in March 2023. This upward trend demonstrates the company's ability to effectively control costs and increase profitability before taxes.

Subsequently, there was a slight decline in the pretax margin in the following periods, with fluctuations but generally maintaining a positive pretax margin. The most recent data as of March 31, 2025, shows a pretax margin of -11.82%, indicating a decrease in profitability compared to the previous periods.

Overall, Allegro Microsystems Inc's pretax margin analysis suggests that the company has shown periods of impressive profitability improvements but also faces challenges in maintaining consistent profitability levels in the most recent periods.