Allegro Microsystems Inc (ALGM)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 933,045 937,314 1,108,580 1,130,440 1,134,230 1,097,090 1,026,580 965,628 893,379 814,786 762,236 734,207 694,669 655,423 618,252
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-65,325K ÷ $933,045K
= -7.00%

Allegro Microsystems Inc's return on equity (ROE) has witnessed fluctuating trends over the specified period. The ROE stood at 6.60% as of June 30, 2021, displaying a relatively modest return on shareholders' equity.

Thereafter, there was a noticeable improvement in ROE, reaching 23.18% by June 30, 2023, reflecting enhanced profitability and efficiency in the utilization of equity capital. This upward trajectory continued until September 30, 2023, where the ROE peaked at 23.06%, indicating the company's ability to generate higher returns on equity for its investors.

However, from the fourth quarter of 2023 onwards, there was a reversal in this positive trend. The ROE declined to 13.51% by March 31, 2024, and further decreased significantly to 6.69% by June 30, 2024. This downward trend continued, leading to negative returns on equity by the end of 2024.

By December 31, 2024, Allegro Microsystems Inc's ROE had turned negative, standing at -7.00%. The negative ROE figures might indicate inefficiencies or financial challenges faced by the company, which could be concerning for investors and stakeholders.

Overall, the fluctuating ROE trends of Allegro Microsystems Inc suggest varying levels of profitability and efficiency in the utilization of equity capital over the specified period, with a recent decline raising potential red flags regarding the company's financial performance and health.