Allegro Microsystems Inc (ALGM)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.16 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.00 |
| Debt-to-capital ratio | 0.18 | 0.18 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.00 |
| Debt-to-equity ratio | 0.22 | 0.22 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.00 |
| 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 |
The solvency ratios of Allegro Microsystems Inc reflect its ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.02-0.16 over the past several quarters, indicating a low level of debt relative to the company's total assets.
Similarly, the debt-to-capital and debt-to-equity ratios also remained consistent at around 0.02-0.18 and 0.02-0.22 respectively, suggesting a conservative capital structure with minimal reliance on debt financing.
The financial leverage ratio, which measures the proportion of debt in the company's capital structure, fluctuated between 1.17 and 1.38. This indicates that for every dollar of equity, there is between $1.17 and $1.38 of debt, with the ratio converging towards the lower end in recent quarters.
Overall, Allegro Microsystems Inc maintains a stable and conservative solvency position, with low levels of debt relative to assets and capital, and a gradually decreasing financial leverage ratio, signaling a prudent approach to managing long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 19.08 | 40.97 | 98.07 | 101.10 | 98.02 | 95.26 | 86.01 | 51.56 | 67.20 | 24.59 | 29.25 | 28.91 |
The interest coverage ratio for Allegro Microsystems Inc has shown a fluctuating trend over the past year. As of March 31, 2024, the company's interest coverage stands at 19.08, indicating that the company's operating income is sufficient to cover its interest expense nearly 19 times over. This represents a decrease from the previous quarter's ratio of 40.97, suggesting a potential decrease in operating income relative to interest costs.
Looking further back, the interest coverage ratio has shown significant variability, with peaks in September 2023 (98.07) and June 2023 (101.10), indicating strong ability to cover interest expenses during those periods. However, the ratio has also dipped notably in some quarters, such as December 2022 (95.26) and September 2022 (86.01).
Overall, the company's interest coverage ratio has been generally healthy, with most values comfortably above 1, indicating that Allegro Microsystems Inc is able to meet its interest obligations with ease. However, the fluctuations in the ratio suggest that the company's operating income and interest expenses have varied over the past year, highlighting the importance of monitoring financial performance consistently.