Allegro Microsystems has a quick ratio of 3.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for Allegro Microsystems's Quick Ratio or its related term are showing as below:
ALGM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.59 Med: 3.19 Max: 4.16
Current: 3
During the past 6 years, Allegro Microsystems's highest Quick Ratio was 4.16. The lowest was 0.59. And the median was 3.19.
ALGM's Quick Ratio is ranked better than 69.3% of 1013
companies
in the Semiconductors industry
Industry Median: 1.86
vs ALGM: 3.00
Allegro Microsystems Quick Ratio Historical Data
The historical data trend for Allegro Microsystems's Quick Ratio 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.
Competitive Comparison of Allegro Microsystems's Quick Ratio
For the Semiconductors subindustry, Allegro Microsystems's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Allegro Microsystems's Quick Ratio for the fiscal year that ended in Mar. 2024 is calculated as
* 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.
Allegro Microsystems (NAS:ALGM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Allegro Microsystems Quick Ratio Related Terms
Thank you for viewing the detailed overview of Allegro Microsystems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories such as SENSE which includes Current Sensors, Switches and Latches, and Interface ICs among others; REGULATE which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC, and others. Key revenue for the company is generated from Greater China and the rest from the United States, Japan, Europe, and other regions.
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