Allegro Microsystems Inc (ALGM)

Debt-to-equity 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-equity ratio		0.22	0.03	0.03	0.04

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $249,611K ÷ $1,130,440K
= 0.22

The debt-to-equity ratio of Allegro Microsystems Inc has shown an upward trend over the past four years, increasing from 0.04 in March 2021 to 0.22 in March 2024. This indicates that the company's level of debt relative to its equity has been rising steadily.

A low debt-to-equity ratio is generally viewed favorably as it suggests a lower financial risk and indicates that the company is primarily using equity to finance its operations. In contrast, a higher debt-to-equity ratio may signal a higher level of financial leverage and could potentially indicate higher financial risk.

It is important to note that the interpretation of the debt-to-equity ratio can vary depending on the industry norms and the company's specific circumstances. Further analysis of Allegro Microsystems Inc's financial health and performance would be necessary to fully assess the implications of the increasing trend in its debt-to-equity ratio.