Allegro Microsystems Inc (ALGM)

Debt-to-assets 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
Long-term debt	US$ in thousands	249,611	250,464	25,000	25,000	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	1,530,600	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	747,678	711,898	779,699
Debt-to-assets ratio		0.16	0.16	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.03	0.04	0.00

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 remained relatively stable over the last few quarters, ranging from 0.02 to 0.16. This ratio indicates the proportion of the company's assets financed by debt, with a lower ratio suggesting lower financial risk. The company's consistent low debt-to-assets ratio indicates a conservative financial strategy, where a significant portion of its assets are funded through equity rather than debt. This may reflect a strong financial position and ability to meet financial obligations. Additionally, the slight fluctuations in the ratio demonstrate a consistent approach to managing debt levels, which may be a positive signal to investors and creditors.