Allegro Microsystems Inc (ALGM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 49.46% | 51.48% | 52.66% | 55.05% | 56.46% | 57.41% | 56.83% | 56.14% | 55.51% | 54.68% | 53.97% | 53.05% | 51.88% | 50.41% | 48.58% |
| Operating profit margin | 1.26% | 5.67% | 12.31% | 18.80% | 22.74% | 25.51% | 25.16% | 20.90% | 18.83% | 16.65% | 14.90% | 17.79% | 16.96% | 9.29% | 6.10% |
| 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% |
| Net profit margin | -8.86% | -3.10% | 7.95% | 14.63% | 20.72% | 23.69% | 23.09% | 19.26% | 16.68% | 14.16% | 12.75% | 15.55% | 13.81% | 9.06% | 6.25% |
Allegro Microsystems Inc's profitability ratios have exhibited fluctuations over the reported periods. The gross profit margin has increased gradually from 48.58% in June 2021 to a peak of 57.41% in September 2023 before declining to 49.46% by December 2023. It further decreased to 51.48% in September 2024.
The operating profit margin saw significant variation, starting at 6.10% in June 2021, peaking at 25.51% in September 2023, and then dropping to 1.26% by December 2024.
The pretax margin also showed fluctuations, with the highest value of 26.32% in September 2023 and declining to -6.81% by December 2024.
The net profit margin followed a similar trend, with a peak of 23.69% in September 2023 and falling to -8.86% by December 2024.
Overall, Allegro Microsystems Inc's profitability has been volatile, with varying margins across different periods, indicating potential challenges in managing costs and generating sustainable profits.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.64% | 3.08% | 7.93% | 12.82% | 15.55% | 21.20% | 21.01% | 17.21% | 15.72% | 14.33% | 12.87% | 15.31% | 14.78% | 8.22% | 5.00% |
| Return on assets (ROA) | -4.53% | -1.68% | 5.12% | 9.98% | 14.17% | 19.69% | 19.28% | 15.86% | 13.93% | 12.19% | 11.01% | 13.38% | 12.03% | 8.02% | 5.12% |
| Return on total capital | -1.63% | 1.40% | 9.55% | 14.88% | 18.16% | 25.30% | 25.65% | 21.54% | 19.09% | 16.94% | 15.40% | 18.57% | 18.05% | 9.70% | 6.20% |
| Return on equity (ROE) | -7.00% | -2.68% | 6.69% | 13.51% | 19.55% | 23.06% | 23.18% | 19.40% | 16.90% | 14.66% | 13.38% | 16.26% | 14.75% | 9.83% | 6.60% |
Allegro Microsystems Inc has shown varying levels of profitability over the reporting periods based on the profitability ratios calculated. The Operating Return on Assets (Operating ROA) increased steadily from June 2021 to September 2023, peaking at 21.20%, indicating efficient management of operations to generate profits from its assets. However, there was a decline in the Operating ROA to 0.64% by December 2024, reflecting potential operational challenges towards the end of the period.
The Return on Assets (ROA) followed a similar trend, with a consistent increase until September 2023 and a rapid decline in the last quarter of 2024, dropping to -4.53%. This suggests a decrease in the company's ability to generate profits relative to its total assets as the performance deteriorated towards the end of the period.
The Return on Total Capital also exhibited a gradual increase in profitability up to June 2023, reaching 25.65%, indicating efficient utilization of both equity and debt to generate returns. However, there was a sharp decline in profitability thereafter, with the ratio turning negative by December 2024, indicating potential financial distress.
Lastly, the Return on Equity (ROE) reflected a similar pattern, with consistent growth in profitability up to June 2023, reaching 23.18%. Subsequently, there was a significant decline in ROE, turning negative by September 2024, which could signal financial challenges and decreased returns to the shareholders.
Overall, the profitability ratios of Allegro Microsystems Inc show a mixed performance over the reporting periods, with strong profitability metrics in the mid-years but facing challenges towards the end of the period, highlighting the need for a detailed analysis of the company's operations and financial management.