Allegro Microsystems Inc (ALGM)

Debt-to-assets 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
Long-term debt US$ in thousands 374,729 396,056 202,589 249,611 250,464 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Total assets US$ in thousands 1,441,740 1,492,120 1,448,890 1,530,600 1,565,300 1,284,940 1,234,090 1,181,160 1,084,060 979,802 926,113 892,620 851,417 803,251 796,887
Debt-to-assets ratio 0.26 0.27 0.14 0.16 0.16 0.02 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $374,729K ÷ $1,441,740K
= 0.26

The debt-to-assets ratio of Allegro Microsystems Inc has remained relatively stable at around 0.03 from June 30, 2021, to March 31, 2023. This indicates that the company has a low level of debt relative to its total assets during this period.

However, there was a notable increase in the debt-to-assets ratio starting from December 31, 2023, where the ratio jumped to 0.16 and continued to climb to 0.27 by September 30, 2024. This significant increase suggests that Allegro Microsystems Inc has taken on more debt relative to its total assets in the later period.

The rise in the debt-to-assets ratio could indicate that the company has increased its borrowing to finance growth opportunities, acquisitions, or other investments. It is important to monitor this ratio to ensure that the company's debt levels remain manageable and sustainable in the long term.