Allegro Microsystems Inc (ALGM)

Debt-to-equity ratio

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 23, 2022 Sep 23, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Long-term debt US$ in thousands 374,729 396,056 202,589 249,611 250,464 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 933,045 937,314 1,108,580 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
Debt-to-equity ratio 0.40 0.42 0.18 0.22 0.22 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.04 0.04 0.04

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $374,729K ÷ $933,045K
= 0.40

The debt-to-equity ratio of Allegro Microsystems Inc has been relatively stable over the past few years, standing at 0.04 as of June 30, 2021, and remaining at this level until March 31, 2022. Subsequently, the ratio decreased slightly to 0.03 as of June 30, 2022, and has been maintained at this level up to December 31, 2023.

However, there was a significant increase in the debt-to-equity ratio to 0.22 as of March 31, 2024, followed by further fluctuations. The ratio surged to 0.42 as of September 30, 2024, indicating a substantial increase in debt in relation to equity. This spike was followed by a decrease to 0.40 as of December 31, 2024.

The sudden increase in the debt-to-equity ratio in the later periods may suggest that Allegro Microsystems Inc has taken on more debt relative to its equity, potentially signaling increased financial leverage. It is important for stakeholders to monitor this ratio closely to assess the company's capital structure and financial risk.