Allegro Microsystems Inc (ALGM)
Liquidity ratios
| 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 23, 2022 | Sep 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.91 | 4.22 | 4.65 | 4.85 | 4.57 | 5.33 | 4.56 | 4.03 | 4.52 | 4.84 | 4.73 | 4.91 | 4.65 | 5.04 | 3.80 |
| Quick ratio | 2.20 | 2.14 | 2.24 | 2.80 | 2.73 | 3.64 | 3.09 | 2.98 | 3.37 | 3.66 | 3.65 | 3.81 | 3.62 | 3.92 | 2.72 |
| Cash ratio | 1.37 | 1.52 | 1.64 | 1.80 | 1.78 | 2.76 | 2.30 | 2.13 | 2.44 | 2.60 | 2.56 | 2.71 | 2.57 | 2.81 | 1.86 |
Allegro Microsystems Inc's liquidity ratios indicate a strong liquidity position over the reported periods. The current ratio, which measures the company's ability to pay its short-term obligations with current assets, remained consistently high, ranging between 3.80 and 5.33. These values suggest that Allegro Microsystems Inc has ample current assets to cover its short-term liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a robust liquidity position. The quick ratio varied between 2.14 and 4.23, indicating the company's ability to meet its short-term obligations without relying on inventory.
Furthermore, the cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, demonstrates a healthy liquidity level for Allegro Microsystems Inc. The company's cash ratio ranged from 1.37 to 3.12, highlighting its ability to cover its current liabilities with cash on hand.
Overall, Allegro Microsystems Inc's liquidity ratios consistently depict a sound financial position, with sufficient liquid assets to meet its short-term obligations effectively.
Additional liquidity measure
| 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 23, 2022 | Sep 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 135.09 | 107.20 | 103.94 | 109.74 | 110.35 | 108.00 | 113.40 | 114.21 | 97.30 | 89.36 | 91.01 | 94.28 | 84.17 | 83.12 | 92.33 |
The cash conversion cycle of Allegro Microsystems Inc, a crucial metric in assessing the efficiency of its cash management, has displayed some fluctuations over the surveyed period. Starting at 92.33 days on June 30, 2021, the cycle improved to 83.12 days by September 30, 2021, indicating a more efficient conversion of inventory to cash. However, there was a slight increase to 84.17 days by December 31, 2021.
Throughout the subsequent quarters, the trend continued with some variability. By March 31, 2022, the cycle increased to 94.28 days, possibly indicating delayed cash inflows relative to the outflows in the operational cycle. The trend reversed by the end of June 2022, with the cycle reducing to 91.01 days and staying relatively consistent through September 23, 2022, at 89.36 days.
There was a noticeable increase in the cycle to 97.30 days by December 23, 2022, likely hinting at challenges in managing receivables and payables effectively. The cycle continued to increase into 2023, reaching 114.21 days by March 31, before gradually declining to 103.94 days by June 30, 2024. However, it rose once again to 135.09 days by December 31, 2024, possibly indicating a need for improved working capital management.
Overall, Allegro Microsystems Inc's cash conversion cycle has experienced fluctuations, suggesting that the company may need to focus on optimizing its inventory turnover, receivables collection, and payables management to enhance its overall cash flow efficiency.