Allegro Microsystems Inc (ALGM)

Quick ratio

		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	US$ in thousands	138,452	188,751	173,136	212,143	214,308	370,013	353,408	351,576	334,306	293,588	286,557	282,383	259,208	248,579	221,934
Short-term investments	US$ in thousands	—	—	—	—	—	—	5,222	—	—	—	—	12,346	13,393	27,169	26,943
Receivables	US$ in thousands	83,805	76,985	63,358	118,508	114,324	118,947	121,506	141,787	128,127	119,080	121,633	114,615	105,946	97,824	101,500
Total current liabilities	US$ in thousands	100,912	124,008	105,537	117,908	120,187	134,241	153,545	165,325	137,228	112,754	111,804	104,223	100,841	88,416	119,033
Quick ratio		2.20	2.14	2.24	2.80	2.73	3.64	3.13	2.98	3.37	3.66	3.65	3.93	3.75	4.23	2.94

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($138,452K + $—K + $83,805K) ÷ $100,912K
= 2.20

The quick ratio, also known as the acid-test ratio, is a financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities.

In the case of Allegro Microsystems Inc, the quick ratio has shown some fluctuations over the past few years, ranging from a low of 2.14 to a high of 4.23. As of December 31, 2024, the quick ratio stands at 2.20, indicating that the company has $2.20 in liquid assets available to cover each dollar of its current liabilities.

Overall, the quick ratio for Allegro Microsystems Inc has generally remained above 1, which suggests that the company has a sufficient level of liquid assets to meet its short-term obligations. However, investors and analysts should continue to monitor the trend in the quick ratio to ensure the company's liquidity position remains healthy.