Allegro Microsystems Inc (ALGM)

Financial leverage ratio

Mar 31, 2025 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 31, 2022 Dec 23, 2022 Sep 30, 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
Total assets US$ in thousands 1,420,960 1,441,740 1,492,120 1,448,890 1,583,390 1,565,300 1,284,940 1,234,090 1,181,160 1,084,060 1,084,060 979,802 979,802 926,113 892,620 851,417 803,251 796,887 747,678 711,898
Total stockholders’ equity US$ in thousands 931,100 934,426 937,314 1,108,580 1,130,440 1,134,230 1,097,090 1,026,580 965,628 893,379 893,379 814,786 814,786 762,236 734,207 694,669 655,423 618,252 585,752 575,831
Financial leverage ratio 1.53 1.54 1.59 1.31 1.40 1.38 1.17 1.20 1.22 1.21 1.21 1.20 1.20 1.21 1.22 1.23 1.23 1.29 1.28 1.24

March 31, 2025 calculation

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

The financial leverage ratio of Allegro Microsystems Inc has shown fluctuations over the past few years. The ratio indicates the proportion of the company's total debt to its total equity, reflecting the degree of financial leverage used by the company.

From December 31, 2020, to September 30, 2022, the financial leverage ratio remained relatively stable, fluctuating between 1.20 and 1.29. This suggests that the company was maintaining a balanced mix of debt and equity in its capital structure during this period.

However, from December 23, 2022, to September 30, 2024, there was a noticeable increase in the financial leverage ratio, peaking at 1.59 on September 30, 2024. This increase indicates that the company might have taken on more debt relative to its equity during this period, potentially increasing its financial risk.

By December 31, 2024, the financial leverage ratio had decreased to 1.54, showing a slight improvement in the company's leverage position. The ratio continued to decline in the following quarters, reaching 1.53 by March 31, 2025.

Overall, the trend in Allegro Microsystems Inc's financial leverage ratio indicates variability in the company's capital structure and leverage decisions. It is important for investors and stakeholders to monitor this ratio to assess the company's risk profile and financial strength.