Allegro Microsystems Inc (ALGM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -43,766 | -26,515 | 13,550 | 120,109 | 200,178 | 251,603 | 284,082 | 282,925 | 273,669 | 264,576 | 204,240 | 161,724 | 141,630 | 122,563 | 142,510 | 130,072 | 57,563 | 29,449 | 1,666 | 1,790 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 25,000 | — | 25,000 | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -4.70% | -2.84% | 1.45% | 10.83% | 17.71% | 22.18% | 25.89% | 27.56% | 28.34% | 29.62% | 22.24% | 19.85% | 16.87% | 16.08% | 19.41% | 18.72% | 8.78% | 4.76% | 0.28% | 0.31% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-43,766K ÷ ($—K + $931,100K)
= -4.70%
Allegro Microsystems Inc's return on total capital has shown fluctuations over the period from December 31, 2020, to March 31, 2025. The return on total capital started at a low of 0.31% in December 2020 and experienced fluctuations before peaking at 29.62% by December 2022. After reaching this peak, the return on total capital gradually decreased over the following quarters, falling into negative territory by March 2025.
The strong performance in 2022, where the return on total capital exceeded 20%, indicates that Allegro Microsystems Inc was effectively utilizing its capital to generate profits. However, the subsequent decline suggests a decrease in efficiency or profitability. The negative returns observed in the last two quarters, especially in March 2025, indicate that the company may be facing challenges in effectively utilizing its total capital to generate returns for its investors.
Overall, the trend in the return on total capital for Allegro Microsystems Inc shows both periods of strong performance and challenges, highlighting the importance of closely monitoring and managing the company's capital allocation and operational efficiency.
Peer comparison
Mar 31, 2025