Allegro Microsystems Inc (ALGM)

Quick ratio

		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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cash	US$ in thousands	212,143	214,308	370,013	353,408	351,576	334,306	293,588	286,557	282,383	259,208	248,579	221,934	197,214	157,653	201,998
Short-term investments	US$ in thousands	—	—	—	5,222	—	—	—	—	12,346	13,393	27,169	26,943	26,664	26,657	25,028
Receivables	US$ in thousands	118,508	114,324	118,947	121,506	141,787	128,127	119,080	121,633	114,615	105,946	97,824	101,500	93,332	87,487	—
Total current liabilities	US$ in thousands	117,908	120,187	134,241	153,545	165,325	137,228	112,754	111,804	104,223	100,841	88,416	119,033	116,674	89,119	122,942
Quick ratio		2.80	2.73	3.64	3.13	2.98	3.37	3.66	3.65	3.93	3.75	4.23	2.94	2.72	3.05	1.85

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 for Allegro Microsystems Inc has fluctuated over the past fifteen quarters, ranging from a low of 1.85 to a high of 4.23. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Looking at the trend, we observe that the quick ratio has generally remained above 2, indicating a strong liquidity position for Allegro Microsystems Inc. The recent quick ratios ranging from 2.73 to 3.64 suggest that the company has maintained a healthy ability to meet short-term obligations without relying heavily on inventory. However, the slight fluctuations in the quick ratio over time may signal changes in the company's liquidity management or operations.

Overall, Allegro Microsystems Inc's quick ratio has shown stability and a consistent ability to cover its short-term liabilities with liquid assets, which is a positive indicator for investors and creditors assessing the company's financial health.