ALGM (Allegro Microsystems) Inventory Turnover: 0.72 (As of Mar. 2026)

What is Allegro Microsystems Inventory Turnover?

Allegro Microsystems ALGM -4.37% 73 Inventory Turnover is 0.72 as of Mar. 2026. GuruFocus rates ALGM with a GF Score™ of 73/100 and a GF Value™ of $29.58 (Significantly Overvalued). The stock has 8 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Allegro Microsystems's Cost of Goods Sold for the three months ended in Mar. 2026 was $128.9 Mil. Allegro Microsystems's Average Total Inventories for the quarter that ended in Mar. 2026 was $180.0 Mil. Allegro Microsystems's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Allegro Microsystems's Days Inventory for the three months ended in Mar. 2026 was 127.39.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Allegro Microsystems's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.74.

Allegro Microsystems (NAS:ALGM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Allegro Microsystems's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2026 )	/	Cost of Goods Sold (Q: Mar. 2026 )	*	Days in Period
	=	179.9735	/	128.912	*	365 / 4
	=	127.39

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Allegro Microsystems's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	179.9735	/	243.187
	=	0.74

* 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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Allegro Microsystems Inventory Turnover Related Terms

Allegro Microsystems Inventory Turnover Historical Data

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The historical data trend for Allegro Microsystems's Inventory Turnover can be seen below:

Allegro Microsystems Inventory Turnover Chart

Allegro Microsystems Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Inventory Turnover

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4.16

3.60

3.03

2.33

2.62

Allegro Microsystems Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Inventory Turnover	Get a 7-Day Free Trial															0.60	0.63	0.67	0.70	0.72

73GF Score

Allegro Microsystems Inc ALGM

Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.

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Allegro Microsystems Inventory Turnover Calculation

Allegro Microsystems's Inventory Turnover for the fiscal year that ended in Mar. 2026 is calculated as

	Inventory Turnover (A: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2026 )	/ (	(Total Inventories (A: Mar. 2025 )	+	Total Inventories (A: Mar. 2026 ))	/	count )
=	478.126	/ (	(183.914	+	181.752)	/	2 )
=	478.126	/	182.833
=	2.62

Allegro Microsystems's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

	Inventory Turnover (Q: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2026 )	/ (	(Total Inventories (Q: Dec. 2025 )	+	Total Inventories (Q: Mar. 2026 ))	/	count )
=	128.912	/ (	(178.195	+	181.752)	/	2 )
=	128.912	/	179.9735
=	0.72

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.72 mean?

Allegro Microsystems (ALGM) has a Inventory Turnover of 0.72 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Allegro Microsystems and its competitors.

Is Allegro Microsystems' Inventory Turnover too high?

Allegro Microsystems' current Inventory Turnover is 0.72. 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' Inventory Turnover compare to SIMO and SWKS?

Allegro Microsystems' Inventory Turnover of 0.72 can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Inventory Turnover for a Semiconductors company?

A good Inventory Turnover depends on the Semiconductors industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Inventory Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Allegro Microsystems and its competitors. Allegro Microsystems's current Inventory Turnover is 0.72. 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 $29.58, compared to a current price of $54.87 — trading 85.5% above its estimated fair value. The current Inventory Turnover is 0.72. 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 Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Inventory Turnover is 0.72 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 $54.87 is trading 85.5% above its estimated GF Value™ of $29.58. GuruFocus considers Allegro Microsystems to be Significantly Overvalued.

Key valuation signals for ALGM:

Inventory Turnover: 0.72
GF Value™: $29.58 vs. price of $54.87 (85.5% above fair value)
GF Score™: 73/100 with 8 warning signs

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 Business Description

Industry Technology Semiconductors

Comparable Companies SIMO SWKS RMBS MXL QRVO VSH SMTC CRUS SLAB DIOD NVDA TPE:2330 AVGO MU XKRX:000660 AMD INTC TSE:285A TXN MRVL

Other Exchanges ALGM:Mexico 6V5:Germany

Address 955 Perimeter Road, Manchester, NH, USA, 03103

Website https://www.allegromicro.com

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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$54.87

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