Allegro Microsystems Inc (ALGM)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-65,325	-25,120	74,172	152,697	221,789	252,963	237,960	187,357	150,996	119,413	101,985	119,407	102,435	64,404	40,802
Total assets	US$ in thousands	1,441,740	1,492,120	1,448,890	1,530,600	1,565,300	1,284,940	1,234,090	1,181,160	1,084,060	979,802	926,113	892,620	851,417	803,251	796,887
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-65,325K ÷ $1,441,740K
= -4.53%

Allegro Microsystems Inc's Return on Assets (ROA) has shown fluctuating trends over the period from June 30, 2021, to December 31, 2024.

ROA increased steadily from 5.12% in June 2021 to a peak of 19.69% in September 2023, indicating the company's ability to generate profits relative to its total assets. This upward trend suggests efficient asset utilization and improved profitability.

However, there was a noticeable decline in ROA in the following periods, dropping to 5.12% in June 2024, and significantly falling into negative territory at -4.53% by December 2024. These diminishing ROA figures could indicate challenges in maintaining profitability and controlling asset efficiency. Negative ROA figures suggest that the company's assets may not be generating sufficient returns to cover costs, which could signal financial distress.

It is essential for Allegro Microsystems Inc to assess the factors contributing to the declining ROA and take necessary actions to enhance asset utilization and profitability in order to ensure long-term financial sustainability and efficiency.