Allegro Microsystems Inc (ALGM)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Long-term debt	US$ in thousands	249,611	25,000	25,000	25,000
Total assets	US$ in thousands	1,530,600	1,181,160	892,620	747,678
Debt-to-assets ratio		0.16	0.02	0.03	0.03

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $249,611K ÷ $1,530,600K
= 0.16

The debt-to-assets ratio of Allegro Microsystems Inc has shown a notable increase from 0.02 in 2023 to 0.16 in 2024. This indicates that the company's level of debt in relation to its total assets has significantly risen over the one-year period. While the company had a relatively low debt-to-assets ratio in the previous years (0.03 in both 2022 and 2021), the substantial increase in 2024 suggests a higher reliance on debt to finance its operations or investments. It is essential for stakeholders to further investigate the reasons behind this notable change to assess the company's financial leverage and risk profile accurately.