Allegro Microsystems Inc (ALGM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,441,740 | 1,492,120 | 1,448,890 | 1,530,600 | 1,565,300 | 1,284,940 | 1,234,090 | 1,181,160 | 1,084,060 | 979,802 | 926,113 | 892,620 | 851,417 | 803,251 | 796,887 |
| 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 |
| Financial leverage ratio | 1.55 | 1.59 | 1.31 | 1.35 | 1.38 | 1.17 | 1.20 | 1.22 | 1.21 | 1.20 | 1.21 | 1.22 | 1.23 | 1.23 | 1.29 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,441,740K ÷ $933,045K
= 1.55
The financial leverage ratio of Allegro Microsystems Inc has been fluctuating over the period from June 30, 2021, to December 31, 2024. The ratio started at 1.29 in June 2021 and showed a slight decreasing trend until September 2022 where the ratio stood at 1.20.
From September 2022 to September 2023, there was a relatively stable period with the ratio fluctuating within a narrow range. However, there was a significant increase in leverage from September 2023 to December 2024, where the ratio increased from 1.17 to 1.55.
This increasing trend in the financial leverage ratio indicates that Allegro Microsystems Inc has been relying more on debt financing compared to equity during this period. It is essential for the company to monitor its leverage ratio closely to ensure it is maintaining a healthy balance between debt and equity to support its growth and operations effectively.
Peer comparison
Dec 31, 2024