Allegro Microsystems Inc (ALGM)

Debt-to-equity ratio

		Mar 31, 2025	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 31, 2022	Dec 23, 2022	Sep 30, 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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	25,000	—	25,000	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	931,100	934,426	937,314	1,108,580	1,130,440	1,134,230	1,097,090	1,026,580	965,628	893,379	893,379	814,786	814,786	762,236	734,207	694,669	655,423	618,252	585,752	575,831
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.03	0.00	0.03	0.00	0.00	0.00	0.00	0.00	0.00	0.00

March 31, 2025 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $931,100K
= 0.00

Allegro Microsystems Inc has consistently maintained a zero debt-to-equity ratio from December 31, 2020, to March 31, 2025. This indicates that the company has not utilized any debt to finance its operations or growth during this period. A zero debt-to-equity ratio suggests that the company's operations are mainly financed through equity, which can be considered a positive indicator of financial stability and strength.

However, a slight increase in the debt-to-equity ratio to 0.03 on September 23, 2022, and December 23, 2022, may indicate that the company started utilizing some debt financing, albeit in a minimal amount. This change could signify a strategic decision to optimize capital structure or take advantage of favorable interest rates. Nonetheless, Allegro Microsystems Inc's overall conservative debt policy is evident from the consistently low debt-to-equity ratio over the analyzed period.