Allegro Microsystems Inc (ALGM)

Current 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
Total current assets	US$ in thousands	572,213	549,496	714,896	700,304	665,829	619,952	545,485	529,034	511,692	469,192	445,914	452,527	430,564	378,530	407,222
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
Current ratio		4.85	4.57	5.33	4.56	4.03	4.52	4.84	4.73	4.91	4.65	5.04	3.80	3.69	4.25	3.31

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 15 quarters, ranging from a low of 3.31 to a high of 5.33. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger ability to meet short-term obligations.

Based on the data provided, the current ratio has generally been above 4, indicating that Allegro Microsystems Inc has had a healthy liquidity position over the period reviewed. The lowest current ratio of 3.31 in September 2020 might indicate a temporary strain on liquidity, but the company managed to improve its current ratio significantly in subsequent quarters.

Overall, the current ratio trend for Allegro Microsystems Inc seems to be stable, with minor fluctuations, and the company appears to have maintained a strong ability to cover its short-term liabilities with its current assets.