GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Allegro Microsystems Inc (NAS:ALGM) » Definitions » Interest Coverage

Allegro Microsystems (Allegro Microsystems) Interest Coverage : 9.52 (As of Dec. 2023)


View and export this data going back to 2020. Start your Free Trial

What is Allegro Microsystems Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Allegro Microsystems's Operating Income for the three months ended in Dec. 2023 was $37 Mil. Allegro Microsystems's Interest Expense for the three months ended in Dec. 2023 was $-4 Mil. Allegro Microsystems's interest coverage for the quarter that ended in Dec. 2023 was 9.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Allegro Microsystems's Interest Coverage or its related term are showing as below:

ALGM' s Interest Coverage Range Over the Past 10 Years
Min: 4.38   Med: 82.58   Max: 480.25
Current: 39.22


ALGM's Interest Coverage is ranked better than
62.48% of 621 companies
in the Semiconductors industry
Industry Median: 19.83 vs ALGM: 39.22

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Allegro Microsystems Interest Coverage Historical Data

The historical data trend for Allegro Microsystems's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Allegro Microsystems Interest Coverage Chart

Allegro Microsystems Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Interest Coverage
82.58 480.25 4.38 53.88 85.83

Allegro Microsystems Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 107.06 79.87 92.00 96.19 9.52

Competitive Comparison of Allegro Microsystems's Interest Coverage

For the Semiconductors subindustry, Allegro Microsystems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Allegro Microsystems's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Allegro Microsystems's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Allegro Microsystems's Interest Coverage falls into.



Allegro Microsystems Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Allegro Microsystems's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Allegro Microsystems's Interest Expense was $-2 Mil. Its Operating Income was $201 Mil. And its Long-Term Debt & Capital Lease Obligation was $38 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2023 )/Interest Expense (A: Mar. 2023 )
=-1*200.507/-2.336
=85.83

Allegro Microsystems's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Allegro Microsystems's Interest Expense was $-4 Mil. Its Operating Income was $37 Mil. And its Long-Term Debt & Capital Lease Obligation was $267 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*36.686/-3.854
=9.52

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Allegro Microsystems  (NAS:ALGM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Allegro Microsystems Interest Coverage Related Terms

Thank you for viewing the detailed overview of Allegro Microsystems's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Allegro Microsystems (Allegro Microsystems) Business Description

Traded in Other Exchanges
Address
955 Perimeter Road, Manchester, NH, USA, 03103
Allegro Microsystems Inc is a designer, developer, fabless manufacturer and marketer of sensor ICs and application-specific analog power ICs enabling the critical emerging technologies in the automotive and industrial markets. It is a supplier of power ICs. Its sensor IC allow customers to precisely measure motion, speed, position and current. At the same time, its power ICs include high-temperature and high-voltage capable motor driver, power management and LED driver ICs. Its products are divided into three categories such as SENSE which include Current Sensors, Switches and Latches, Linear and Angular Position, Magnetic Speed Sensors, and Photonics; REGULATE which include Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC and Stepper Driver.
Executives
Vineet A Nargolwala director, officer: President and CEO 529 PLEASANT STREET, MAIL STATION B-1, ATTLEBORO MA 02703
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Derek D'antilio officer: SVP, CFO & Treasurer C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Joseph R Martin director
Michael Doogue officer: SVP, CTO C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Suman Narayan officer: SVP, Products 955 PERIMETER ROAD, MANCHESTER NH 03103
Sharon Briansky officer: SVP, GC and Secretary C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Roald Graham Webster officer: VP, Chief Accounting Officer 955 PERIMETER RD, MANCHESTER NH 03103
Richard R. Lury director C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Susan D Lynch director 2424 GARDEN OF THE GODS ROAD, SUITE 300, COLORADO SPRINGS CO 80919
Max R. Glover officer: SVP of Worldwide Sales C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Oep Skna, L.p. 10 percent owner 510 MADISON AVENUE, 19TH FLOOR, NEW YORK NY 10022
Joanne Valente officer: SVP, CHRO C/O ALLEGRO MICROSYSTEMS, INC., 955 PERIMETER ROAD, MANCHESTER NH 03103
Katsumi Kawashima director 955 PERIMETER ROAD, MANCHESTER NH 03103
Kojiro Hatano director 955 PERIMETER ROAD, MANCHESTER NH 03103