Allegro Microsystems Inc (ALGM)

Current 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
Total current assets	US$ in thousands	483,036	495,627	523,560	490,283	572,213	549,496	714,896	700,304	665,829	619,952	619,952	545,485	545,485	529,034	511,692	469,192	445,914	452,527	430,564	378,530
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
Current ratio		4.30	4.91	4.22	4.65	4.85	4.57	5.33	4.56	4.03	4.52	4.52	4.84	4.84	4.73	4.91	4.65	5.04	3.80	3.69	4.25

March 31, 2025 calculation

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

Allegro Microsystems Inc's current ratio has shown fluctuation over the reporting periods. The current ratio measures the company's ability to cover its short-term obligations with its current assets. As of March 31, 2025, the company's current ratio was 4.30, indicating that it had $4.30 in current assets for every $1 in current liabilities.

The current ratio has ranged from a low of 3.69 in March 2021 to a high of 5.33 in September 30, 2023. Generally, a current ratio above 2 is considered healthy, as it suggests the company is in a strong position to meet its short-term obligations.

Allegro Microsystems Inc's current ratio has been consistently above 2 throughout the reporting periods, indicating a strong liquidity position. The downward trend in the current ratio from the high of 5.33 in September 30, 2023, to 4.30 in March 31, 2025, should be monitored to ensure the company maintains its ability to meet its short-term obligations.