Allegro Microsystems Inc (ALGM)

Return on equity (ROE)

		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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Net income (ttm)	US$ in thousands	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	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	585,752	575,831	634,464
ROE		13.51%	19.55%	23.06%	23.18%	19.40%	16.90%	14.66%	13.38%	16.26%	14.75%	9.83%	6.60%

March 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $152,697K ÷ $1,130,440K
= 13.51%

The return on equity (ROE) of Allegro Microsystems Inc has shown some fluctuation over the past few quarters. From December 2020 to March 2023, the ROE experienced a gradual increase from 6.60% to 23.18%, indicating a significant improvement in the company's ability to generate profits from shareholders' equity.

However, there was a slight dip in ROE in the most recent quarter ending in March 2024, dropping to 13.51%. This decrease suggests a potential slowdown in the company's profitability compared to the previous quarter.

It is essential to closely monitor Allegro Microsystems Inc's future financial performance to identify trends that may impact its ROE. Factors such as revenue growth, cost management, and operational efficiency will play a crucial role in determining the company's ability to maintain and improve its return on equity in the coming quarters.