Allegro Microsystems Inc (ALGM)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 205,560 | 213,682 | 141,803 | 1,152 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 931,100 | 1,130,440 | 965,628 | 734,207 | 585,752 |
| Return on total capital | 0.00% | 18.18% | 22.13% | 19.31% | 0.20% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $931,100K)
= 0.00%
Allegro Microsystems Inc's return on total capital has displayed significant fluctuations over the years based on the data provided. In March 2021, the return on total capital was a mere 0.20%, indicating a relatively lower efficiency in generating returns from its total capital. However, this figure experienced a substantial improvement to 19.31% by March 2022, showcasing a significant leap in capital utilization and profitability.
The trend continued positively as the return on total capital further increased to 22.13% by March 2023, reflecting an enhanced ability to generate profits relative to the invested capital. By March 2024, the return slightly decreased to 18.18%, which, although lower than the previous year, still demonstrates effective capital management by the company.
However, there was a dramatic decline in the return on total capital to 0.00% by March 2025, indicating that Allegro Microsystems Inc may have faced challenges in capital efficiency and profitability during that period.
Overall, the company has showcased varying performances in terms of generating returns on its total capital, with notable improvements in some years but also facing setbacks in others. Monitoring and analyzing these fluctuations can provide valuable insights into the company's financial health and operational efficiency.
Peer comparison
Mar 31, 2025