Allegro Microsystems Inc (ALGM)

Current ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total current assets	US$ in thousands	483,036	572,213	665,829	511,692	430,564
Total current liabilities	US$ in thousands	112,261	117,908	165,325	104,223	116,674
Current ratio		4.30	4.85	4.03	4.91	3.69

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $483,036K ÷ $112,261K
= 4.30

The current ratio of Allegro Microsystems Inc has shown a consistent upward trend over the past five years. As of March 31, 2021, the current ratio was 3.69, indicating the company had $3.69 in current assets for every $1 in current liabilities. This ratio improved significantly to 4.91 by March 31, 2022, and continued to remain strong at 4.03 by March 31, 2023. In the following years, the current ratio further increased to 4.85 by March 31, 2024, and then slightly decreased to 4.30 by March 31, 2025.

A current ratio above 1 typically suggests that a company has more than enough current assets to cover its short-term obligations. Allegro Microsystems Inc's consistently high current ratios over the years indicate a healthy liquidity position, with ample short-term assets to meet its current liabilities. This suggests that the company is well-equipped to cover its short-term financial obligations and indicates a strong financial position.