Allegro Microsystems Inc (ALGM)

Cash ratio

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 23, 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	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	212,143	214,308	370,013	353,408	351,576	334,306	293,588	286,557	282,383	259,208	248,579	221,934	197,214	157,653	201,998
Short-term investments	US$ in thousands	—	—	—	5,222	—	—	—	—	12,346	13,393	27,169	26,943	26,664	26,657	25,028
Total current liabilities	US$ in thousands	117,908	120,187	134,241	153,545	165,325	137,228	112,754	111,804	104,223	100,841	88,416	119,033	116,674	89,119	122,942
Cash ratio		1.80	1.78	2.76	2.34	2.13	2.44	2.60	2.56	2.83	2.70	3.12	2.09	1.92	2.07	1.85

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($212,143K + $—K) ÷ $117,908K
= 1.80

The cash ratio of Allegro Microsystems Inc has shown some variability over the periods analyzed. Generally, the cash ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents.

The cash ratio has fluctuated between 1.78 and 3.12 over the past 15 quarters. A ratio above 1.0 indicates that the company has sufficient cash to cover its short-term obligations.

The highest cash ratio recorded was 3.12 in Q3 2021, indicating a strong liquidity position at that time. Conversely, the lowest cash ratio was 1.78 in Q4 2023, which was still above 1.0 but relatively lower compared to other periods.

Overall, the company's cash ratio has generally been above 2.0, suggesting a healthy liquidity position and the ability to meet its short-term obligations. However, it is important to monitor the trend in the cash ratio over time to ensure the company maintains sufficient liquidity to support its operations and financial stability.