Allegro Microsystems Inc (ALGM)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total current assets	US$ in thousands	572,213	665,829	511,692	430,564
Total current liabilities	US$ in thousands	117,908	165,325	104,223	116,674
Current ratio		4.85	4.03	4.91	3.69

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $572,213K ÷ $117,908K
= 4.85

The current ratio of Allegro Microsystems Inc has fluctuated over the past four years. As of March 31, 2024, the company's current ratio stands at 4.85, indicating that it has $4.85 in current assets to cover each $1 of current liabilities. This represents an improvement from the previous year, where the current ratio was 4.03. The increase in the current ratio suggests that Allegro Microsystems Inc has strengthened its liquidity position, which may be attributed to an increase in current assets relative to current liabilities.

Comparing to the ratios from two years ago, where the current ratio was 4.91, and three years ago, where it was 3.69, it can be observed that Allegro Microsystems Inc has experienced some variability in its liquidity position over the years. Despite the fluctuations, the company has generally maintained a healthy current ratio above the industry average of 2. This indicates that Allegro Microsystems Inc is well-positioned to meet its short-term obligations and has a strong liquidity position, providing a measure of financial stability.