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	—	—	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		2.80	2.98	3.93	2.72

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($212,143K + $—K + $118,508K) ÷ $117,908K
= 2.80

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.