Allegro Microsystems Inc (ALGM)

Debt-to-equity 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-equity ratio		0.22	0.22	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.04	0.04	0.00

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 exhibited a relatively stable trend over the past 15 quarters, ranging between 0.00 and 0.22. During the period from December 31, 2020, to March 31, 2024, the company maintained a conservative leverage position with debt levels consistently lower than equity. The ratio showed a notable increase from 0.00 in September 30, 2020, to 0.22 in March 31, 2024, which may indicate a greater reliance on debt financing compared to equity during this period.

It is important to note the significant jump in the debt-to-equity ratio from 0.02 in June 30, 2023, to 0.22 in March 31, 2024, which could be a signal of a strategic shift in the company's capital structure. This increase warrants further investigation into Allegro Microsystems Inc's debt management and overall financial health to assess the potential impact on its long-term solvency and risk profile.