Alpha and Omega Semiconductor Ltd (AOSL)

Short-term

Turnover ratios

The analysis of Alpha and Omega Semiconductor Ltd's activity ratios reveals a series of notable trends over the specified periods:

1. Inventory Turnover: The ratio decreased from 2.93 times as of June 30, 2021, to 3.22 times in 2022, indicating a slight improvement in inventory management and faster inventory movement. However, from 2022 onward, the ratio declined to 2.68 in 2023, further decreasing to 2.48 in 2024. The substantial surge to 2,821.42 in 2025 appears anomalous and may suggest a data inconsistency or a reporting error, as such a spike is implausible within normal operational contexts.

2. Receivables Turnover: There was a decline from 18.35 times in June 2021 to 11.84 in 2022, implying a slowdown in collecting receivables during that period. Subsequently, the ratio increased sharply to 30.84 in 2023, indicating an improvement in receivables collection efficiency, and further to 41.21 in 2024. However, a dramatic escalation to 20,020.76 in 2025 suggests potential data anomalies or reporting issues, as such an extraordinary figure is unlikely to reflect actual operational performance.

3. Payables Turnover: The ratio increased from 5.61 in 2021 to 9.69 in 2023, demonstrating an improvement in paying suppliers more promptly. This upward trend continued slightly into 2024 with a ratio of 10.77. Nonetheless, the ratio's reported figure of 8,912.76 in 2025 signals a probable data inconsistency or error, as such a value would be extraordinary in practical terms.

4. Working Capital Turnover: The ratio decreased from 3.77 in 2021 to 2.75 in 2022 and remained stable through 2023 and 2024. Like other ratios, the figure for 2025 elevated dramatically to 2,880.81, which suggests data inaccuracies or possible data entry errors.

Overall Assessment: The activity ratios from 2021 to 2024 indicate gradual improvements or fluctuations in operational efficiency, with trends generally pointing toward more effective management of inventories, receivables, and payables. The anomalous surge in the 2025 figures across all ratios indicates potential data errors or reporting anomalies, rendering interpretations of these specific figures unreliable without further clarification.

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Average number of days

The analysis of Alpha and Omega Semiconductor Ltd.'s activity ratios over the period from June 30, 2021, to June 30, 2025, reveals notable trends in inventory management, receivables collection, and payables settlement.

Starting with the Days of Inventory on Hand (DOH), there is an initial decline from 124.50 days in 2021 to 113.33 days in 2022, indicating a slight improvement in inventory efficiency. However, this upward trend resumes afterward, with DOH increasing sharply to 136.00 days in 2023 and further to 147.21 days in 2024, before experiencing a significant decrease to an extraordinarily low value of 0.13 days in 2025. This drastic change suggests a potential data anomaly or extraordinary efficiency measures that resulted in near-instant inventory turnover, which is uncommon and warrants further scrutiny.

Regarding the Days of Sales Outstanding (DSO), the company’s receivables collection performance shows improvement early on, decreasing from 19.89 days in 2021 to 11.84 days in 2023. The further reduction to 8.86 days in 2024 and a near-zero figure of 0.02 days in 2025 indicates an extremely rapid collection process, possibly reflecting tightened credit policies or changes in customer payment behavior. This trend suggests an increasing efficiency in converting receivables into cash over time.

In terms of Days of Payables, there is a steady decline from 65.11 days in 2021 to 37.68 days in 2023, and continuing to 33.90 days in 2024. The figure plunges to an almost negligible 0.04 days in 2025, which is highly unusual, implying that the company either settled its payables almost immediately or the data reflects a different accounting or reporting anomaly.

Overall, the data portray a pattern of progressively increasing operational efficiency, particularly towards 2025, characterized by extremely short or nearly nonexistent durations in inventory, receivables, and payables. The dramatic shifts, especially in 2025, suggest possible extraordinary operational changes, data inaccuracies, or alterations in reporting standards. These ratios collectively point toward a trend of accelerated asset conversion cycles, although the extremity of some figures indicates a need for further investigation to validate the underlying financial practices and ensure data integrity.

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Long-term

The long-term activity ratios of Alpha and Omega Semiconductor Ltd, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, reveal the company's efficiency in utilizing its assets over the periods analyzed.

The Fixed Asset Turnover ratio increased from 1.39 as of June 30, 2021, to a peak of 2.27 in the fiscal year ending June 30, 2022. This indicates an improvement in the company's ability to generate sales relative to its fixed assets during that period. However, the ratio declined to 1.93 by June 30, 2023, suggesting a slight decrease in fixed asset efficiency, although it remains notably higher than the 2021 level.

The Total Asset Turnover ratio exhibited a downward trend from 0.72 in 2021 to 0.58 in 2023, indicating a reduced overall efficiency in generating sales from total assets. Specifically, the ratio declined progressively over these years, signaling that the company was generating less revenue per dollar of total assets.

The data for June 30, 2024, shows a marginal decrease to 0.57, suggesting continued slight inefficiency in asset utilization. Notably, for June 30, 2025, the total asset turnover ratio markedly increases to 674.12, which appears anomalous and likely reflects a data entry or reporting error rather than an actual improvement. If accurate, such an abnormal spike would imply an extremely high efficiency in asset utilization, but given typical industry ratios, this figure should be interpreted with caution.

In summary, Alpha and Omega Semiconductor Ltd experienced an improvement in fixed asset efficiency through 2022, followed by a modest decline. Conversely, the overall asset utilization steadily declined from 2021 through 2023, with an unlikely and potentially erroneous surge in 2025. The historical trend indicates a diminishing overall efficiency in asset utilization over the examined period, with some inconsistency in the interpretation of the latest data point.