Allegro Microsystems Inc (ALGM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	121,334	138,452	188,751	173,136	222,161	214,308	370,013	353,408	351,576	334,306	334,306	303,282	293,588	286,557	282,383	259,208	248,579	221,934	197,214	157,653
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	5,222	—	—	—	—	—	—	12,346	13,393	27,169	26,943	26,664	26,657
Total current liabilities	US$ in thousands	112,261	100,912	124,008	105,537	117,908	120,187	134,241	153,545	165,325	137,228	137,228	112,754	112,754	111,804	104,223	100,841	88,416	119,033	116,674	89,119
Cash ratio		1.08	1.37	1.52	1.64	1.88	1.78	2.76	2.34	2.13	2.44	2.44	2.69	2.60	2.56	2.83	2.70	3.12	2.09	1.92	2.07

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($121,334K + $—K) ÷ $112,261K
= 1.08

The cash ratio of Allegro Microsystems Inc has fluctuated over the past few years based on the provided data. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

As of March 31, 2025, the cash ratio stands at 1.08, indicating that Allegro Microsystems Inc has $1.08 in cash and cash equivalents for every $1 of its current liabilities. This suggests a slightly lower liquidity position compared to previous periods.

The trend of the cash ratio shows some volatility but generally remaining above 1, indicating the company has had sufficient cash to cover its short-term obligations. It peaked at 3.12 on September 30, 2021, highlighting a period of particularly strong liquidity.

Investors and stakeholders typically monitor the cash ratio to assess a company's short-term liquidity risk and financial health. Allegro Microsystems Inc should continue to maintain a healthy cash ratio to ensure it can meet its financial obligations and pursue growth opportunities as they arise.