Allegro Microsystems Inc (ALGM)

Financial leverage 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
Total assets	US$ in thousands	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	747,678	711,898	779,699
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
Financial leverage ratio		1.35	1.38	1.17	1.20	1.22	1.21	1.20	1.21	1.22	1.23	1.23	1.29	1.28	1.24	1.23

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,530,600K ÷ $1,130,440K
= 1.35

The financial leverage ratio of Allegro Microsystems Inc has shown fluctuations over the past 15 quarters, ranging from 1.17 to 1.38. The ratio indicates that, on average, the company has been using around 1.25 times more debt to finance its operations compared to equity.

The trend in the financial leverage ratio shows some variations, with the ratio peaking at 1.38 in December 2023 and hitting lows of 1.17 in September 2023. Overall, the company has maintained a relatively stable financial leverage position over the past few quarters, with minor fluctuations observed.

A financial leverage ratio above 1 indicates that the company relies more on debt financing, which can be beneficial in leveraging returns but also poses risks due to the potential for higher interest payments and debt obligations. Investors and creditors may monitor this ratio closely to assess Allegro Microsystems Inc's ability to meet its financial obligations and manage its debt effectively.