Allegro Microsystems Inc (ALGM)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands -73,010 -65,325 -25,120 74,172 152,697 221,789 252,963 251,865 241,629 230,266 175,994 137,091 119,413 101,985 119,407 102,435 64,404 40,802 17,953 22,605
Total assets US$ in thousands 1,420,960 1,441,740 1,492,120 1,448,890 1,583,390 1,565,300 1,284,940 1,234,090 1,181,160 1,084,060 1,084,060 979,802 979,802 926,113 892,620 851,417 803,251 796,887 747,678 711,898
ROA -5.14% -4.53% -1.68% 5.12% 9.64% 14.17% 19.69% 20.41% 20.46% 21.24% 16.23% 13.99% 12.19% 11.01% 13.38% 12.03% 8.02% 5.12% 2.40% 3.18%

March 31, 2025 calculation

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

Allegro Microsystems Inc's return on assets (ROA) has shown fluctuating trends over the reported periods. The ROA started at 3.18% on December 31, 2020, and experienced a decline in the first quarter of 2021 to 2.40%. However, there was a sharp increase in the ROA to 5.12% by June 30, 2021, followed by further improvements in subsequent quarters.

The ROA reached its peak at 21.24% on December 31, 2022, indicating efficient utilization of assets to generate profits. Despite this peak, the ROA started declining gradually in the following periods, reaching negative values by the end of September 30, 2024, and continuing into the first quarter of 2025.

The downward trend in ROA towards negative values could be concerning, suggesting potential issues with asset management efficiency or declining profitability relative to the size of the asset base. It is advisable for Allegro Microsystems Inc to assess its asset management strategies and evaluate factors affecting profitability to address the declining ROA and ensure sustainable financial performance.