Allegro Microsystems Inc (ALGM)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	205,369	213,545	143,097	2,229
Long-term debt	US$ in thousands	249,611	25,000	25,000	25,000
Total stockholders’ equity	US$ in thousands	1,130,440	965,628	734,207	585,752
Return on total capital		14.88%	21.56%	18.85%	0.36%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $205,369K ÷ ($249,611K + $1,130,440K)
= 14.88%

Allegro Microsystems Inc's return on total capital has exhibited fluctuations over the past four years. In March 2023, the company achieved the highest return on total capital at 21.56%, indicating efficient utilization of both debt and equity to generate profits. This was followed by a slightly lower but still robust return in March 2022 at 18.85%. However, the return significantly dropped to 0.36% in March 2021, suggesting potential challenges in capital deployment or profitability during that period. The most recent data point for March 2024 shows a return on total capital of 14.88%, reflecting a recovery from the lower point in 2021 but still below the peak in 2023. Overall, Allegro Microsystems Inc's return on total capital trend indicates varying levels of efficiency in generating returns for its total invested capital over the analyzed period.