Allegro Microsystems Inc (ALGM)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 212,143 | 351,576 | 282,383 | 197,214 |
| Short-term investments | US$ in thousands | 27,769 | — | 12,346 | 26,664 |
| Receivables | US$ in thousands | 118,508 | 141,787 | 114,615 | 93,332 |
| Total current liabilities | US$ in thousands | 117,908 | 165,325 | 104,223 | 116,674 |
| Quick ratio | 3.04 | 2.98 | 3.93 | 2.72 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($212,143K
+ $27,769K
+ $118,508K)
÷ $117,908K
= 3.04
The quick ratio of Allegro Microsystems Inc has shown a declining trend over the past four years. In 2022, the quick ratio was the highest at 3.93, indicating a strong ability to meet short-term obligations with liquid assets. However, in 2023 and 2024, the quick ratio decreased to 2.98 and 2.80, respectively, suggesting a slight reduction in the company's ability to cover immediate liabilities with its most liquid assets.
Overall, the quick ratio of Allegro Microsystems Inc remains above 1, indicating that the company has a sufficient level of liquid assets to cover short-term liabilities. However, the decreasing trend in the quick ratio may warrant further investigation into the company's liquidity management to ensure it maintains a healthy financial position in the future.
Peer comparison
Mar 31, 2024