Allegro Microsystems Inc (ALGM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Allegro Microsystems Inc has shown consistent strength in its solvency ratios over the period analyzed. The Debt-to-assets ratio has remained low and stable, indicating that the company has very little debt in relation to its total assets. This suggests a low level of financial risk and a strong ability to cover its liabilities with its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also maintained very low levels throughout the period, reflecting Allegro Microsystems' conservative capital structure and minimal reliance on debt financing. This further supports the company's financial stability and resilience to economic challenges.
The Financial leverage ratio has fluctuated slightly over the years but has generally remained within a reasonable range. This ratio indicates the extent to which the company is using debt to finance its operations. The decreasing trend in the latter part of the period suggests a reduction in the company's reliance on debt, which can enhance its financial flexibility and reduce interest rate risk.
Overall, Allegro Microsystems Inc's solvency ratios portray a picture of a financially healthy and stable company with a conservative debt profile, well-positioned to weather economic uncertainties and capitalize on growth opportunities in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.52 | -1.07 | 0.65 | 10.59 | 29.72 | 41.00 | 98.13 | 102.88 | 108.94 | 115.64 | 113.78 | 85.61 | 87.05 | 52.74 | 55.91 | 51.82 | 11.90 | 7.43 | 0.46 | 0.61 |
Allegro Microsystems Inc has shown fluctuating interest coverage ratios over the past few years. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income.
The interest coverage ratio for Allegro Microsystems Inc was below 1 for the periods ending December 2020, March 2021, and June 2021, indicating that the company was not generating enough operating income to cover its interest expenses during those periods. However, the ratio significantly improved starting from September 2021, reaching a peak in December 2022 at 115.64, indicating a strong ability to cover interest payments with operating income.
After December 2022, the interest coverage ratio gradually declined, dropping below 1 in March 2025. This may raise concerns about the company's ability to cover its interest expenses with its operating income during that period.
Overall, fluctuations in the interest coverage ratio could signal variability in the company's financial performance and ability to service its interest payments. It is essential for stakeholders to closely monitor this ratio to assess Allegro Microsystems Inc's financial health and risk level.