Allegro Microsystems's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 36.19.
Allegro Microsystems's Days Inventory for the
three
months ended in Mar. 2026 was 127.39.
Allegro Microsystems's Days Payable for the
three
months ended in Mar. 2026 was 34.33.
Therefore, Allegro Microsystems's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 129.25.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Allegro Microsystems Cash Conversion Cycle Related Terms
Allegro Microsystems Cash Conversion Cycle Historical Data
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The historical data trend for Allegro Microsystems's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALGM vs SIMO, SWKS, RMBS: Cash Conversion Cycle Comparison
For the Semiconductors subindustry, Allegro Microsystems's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allegro Microsystems Cash Conversion Cycle vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Allegro Microsystems's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Allegro Microsystems (ALGM) has a Cash Conversion Cycle of 129.25 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Allegro Microsystems and its competitors.
Is Allegro Microsystems' Cash Conversion Cycle too high?
Allegro Microsystems' current Cash Conversion Cycle is 129.25. The Semiconductors industry median Cash Conversion Cycle is 116.11. Allegro Microsystems' value of 129.25 is 11.3% above this industry median. Overall, Allegro Microsystems has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Cash Conversion Cycle compare to SIMO and SWKS?
Allegro Microsystems' Cash Conversion Cycle of 129.25 can be compared against companies in the Semiconductors industry. The industry median Cash Conversion Cycle is 116.11. Allegro Microsystems' value of 129.25 is 11.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Semiconductors company?
The median Cash Conversion Cycle among Semiconductors companies is 116.11, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegro Microsystems's current Cash Conversion Cycle of 129.25 is 11.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Allegro Microsystems and its competitors. For the Semiconductors industry, the median Cash Conversion Cycle is 116.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Cash Conversion Cycle is 129.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allegro Microsystems stock overvalued right now?
Based on GuruFocus' analysis, Allegro Microsystems (ALGM) is currently considered Significantly Overvalued. The stock's GF Value™ is $29.41, compared to a current price of $53.47 — trading 81.8% above its estimated fair value. The current Cash Conversion Cycle is 129.25 and 11.3% above the Semiconductors industry median of 116.11. Allegro Microsystems' overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Cash Conversion Cycle is 129.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allegro Microsystems (ALGM) Overvalued in 2026?
Based on GuruFocus' analysis, Allegro Microsystems stock appears to be overvalued.
The current stock price of $53.47 is trading 81.8% above its estimated GF Value™ of $29.41.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
Cash Conversion Cycle: 129.25
GF Value™: $29.41 vs. price of $53.47 (81.8% above fair value)
Industry Position: 11.3% above the Semiconductors median
No single metric tells the full story. See the ALGM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories: SENSE, which includes Current Sensors, Switches, and Latches, and Interface ICs among others; REGULATE, which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE, which includes BLDC Drivers, Brush DC, and others. Product-wise, the firm derives the majority of its revenue from sales of Magnetic sensors.
73GF Score
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