Allegro Microsystems Inc (ALGM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,130,440	965,628	734,207	585,752
Debt-to-capital ratio		0.18	0.03	0.03	0.04

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $249,611K ÷ ($249,611K + $1,130,440K)
= 0.18

The debt-to-capital ratio of Allegro Microsystems Inc has exhibited an upward trend from 0.03 in fiscal year 2021 to 0.18 in fiscal year 2024. This indicates that the company's reliance on debt as a source of capital has increased over the past four years. The significant rise in the ratio suggests that Allegro Microsystems Inc may be taking on more debt relative to its total capital structure, which could potentially increase its financial risk and interest expense burden. It is crucial for stakeholders to closely monitor this trend and assess the company's ability to manage its debt obligations prudently.