Allegro Microsystems Inc (ALGM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,130,440	1,134,230	1,097,090	1,026,580	965,628	893,379	814,786	762,236	734,207	694,669	655,423	618,252	585,752	575,831	634,464
Debt-to-capital ratio		0.18	0.18	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.04	0.00

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 shown a relatively stable trend over the past few quarters, ranging from 0.00 to 0.18. This ratio indicates the proportion of the company's capital structure that is financed by debt.

The ratio has generally been low, indicating a conservative approach to debt in the company's capital structure. A lower debt-to-capital ratio suggests that Allegro Microsystems Inc relies more on equity financing rather than debt to fund its operations and expansion.

Notably, there was a spike in the debt-to-capital ratio in the March 31, 2024, and December 31, 2023 quarters, where the ratio increased to 0.18. This increase may indicate a temporary shift towards higher debt levels relative to total capital. It would be important to monitor future financial statements to assess if this trend continues or if it was a one-time occurrence.

Overall, the consistent low to moderate debt-to-capital ratio of Allegro Microsystems Inc reflects a prudent financial management strategy and suggests a lower financial risk profile for the company.