Allegro Microsystems Inc (ALGM)

Financial leverage ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total assets	US$ in thousands	1,420,960	1,530,600	1,181,160	892,620	747,678
Total stockholders’ equity	US$ in thousands	931,100	1,130,440	965,628	734,207	585,752
Financial leverage ratio		1.53	1.35	1.22	1.22	1.28

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,420,960K ÷ $931,100K
= 1.53

Allegro Microsystems Inc's financial leverage ratio has shown fluctuations over the past five years. The ratio was at 1.28 as of March 31, 2021, indicating that the company's debt constituted 1.28 times its equity. Subsequently, there was a slight decrease in the ratio to 1.22 as of both March 31, 2022 and March 31, 2023, suggesting a more conservative level of leverage compared to the previous year.

However, by March 31, 2024, the financial leverage ratio increased to 1.35, signaling a higher level of debt relative to equity. This was followed by a more significant rise to 1.53 as of March 31, 2025, indicating a notable increase in leverage.

Overall, Allegro Microsystems Inc's financial leverage ratio has shown variability, with periods of both conservative and more aggressive leverage levels. It is crucial for stakeholders to monitor this ratio to assess the company's capital structure and financial risk.