Allegro Microsystems Inc (ALGM)

Return on assets (ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	-73,010	152,697	187,357	119,407	17,953
Total assets	US$ in thousands	1,420,960	1,530,600	1,181,160	892,620	747,678
ROA		-5.14%	9.98%	15.86%	13.38%	2.40%

March 31, 2025 calculation

ROA = Net income ÷ Total assets
= $-73,010K ÷ $1,420,960K
= -5.14%

Allegro Microsystems Inc's return on assets (ROA) has shown fluctuations over the past five years. In March 31, 2021, the ROA stood at 2.40%, signifying a relatively low profitability generated from its assets. However, there was a significant increase in ROA to 13.38% in March 31, 2022, indicating improved asset utilization and profitability. This positive trend continued into the next fiscal year, with ROA further increasing to 15.86% in March 31, 2023, demonstrating the company's ability to generate higher returns from its assets.

In March 31, 2024, the ROA experienced a decline to 9.98%, suggesting a slight decrease in asset efficiency or profitability. The most recent data point in March 31, 2025, shows a negative ROA of -5.14%, which indicates that Allegro Microsystems Inc may be experiencing challenges in generating profits relative to its asset base.

Overall, Allegro Microsystems Inc's ROA has exhibited fluctuations, with periods of strong performance followed by declines. It is essential for the company to closely monitor its asset management and profitability to ensure sustainable and stable returns in the future.