Allegro Microsystems Inc (ALGM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	931,100	934,426	937,314	1,108,580	1,130,440	1,134,230	1,097,090	1,026,580	965,628	893,379	893,379	814,786	814,786	762,236	734,207	694,669	655,423	618,252	585,752	575,831
ROE		-7.84%	-6.99%	-2.68%	6.69%	13.51%	19.55%	23.06%	24.53%	25.02%	25.77%	19.70%	16.83%	14.66%	13.38%	16.26%	14.75%	9.83%	6.60%	3.06%	3.93%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-73,010K ÷ $931,100K
= -7.84%

Allegro Microsystems Inc's return on equity (ROE) fluctuated over the period from December 31, 2020, to March 31, 2025. Initially, the ROE was relatively low, starting at 3.93% in December 2020 and dropping further to 3.06% by March 2021. However, there was a notable improvement in the subsequent quarters, with ROE increasing to 6.60% in June 2021 and further to 9.83% by September 2021.

The most significant improvement in ROE was observed in the period from December 31, 2021, to March 31, 2023, where ROE consistently rose from 14.75% to a peak of 25.02%. This upward trend indicates that the company was generating higher profits relative to shareholders' equity during this period, reflecting effective utilization of equity capital.

However, starting from June 30, 2023, there was a reversal in the trend, with ROE gradually declining. By December 31, 2024, the ROE had turned negative, reaching -6.99%, and further decreasing to -7.84% by March 31, 2025. A negative ROE indicates that the company was not able to generate positive returns on shareholders' equity, which may raise concerns about the company's financial performance and management efficiency.

Overall, Allegro Microsystems Inc's ROE exhibited both positive and negative trends over the period, indicating fluctuations in profitability and efficiency in generating returns for its shareholders.