Alpha and Omega Semiconductor Ltd (AOSL)

Days of inventory on hand (DOH)

		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	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Inventory turnover		2.76	2.75	2.67	2.46	2.43	2.45	2.58	2.68	2.81	3.26	3.18	3.22	3.45	3.72	2.85	2.93	2.96	2.75	2.76	2.67
DOH	days	132.09	132.83	136.94	148.19	149.96	148.97	141.55	136.00	129.79	111.84	114.92	113.33	105.84	98.02	128.07	124.50	123.44	132.69	132.15	136.58

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.76
= 132.09

The analysis of Alpha and Omega Semiconductor Ltd's days of inventory on hand (DOH) from June 30, 2020, through March 31, 2025, indicates notable fluctuations over the observed period. As of June 30, 2020, the DOH was approximately 136.58 days, representing a relatively high level of inventory held by the company at that time. This figure exhibited a gradual decline over the subsequent quarters, reaching its lowest point of approximately 98.02 days as of December 31, 2021.

From the start of 2022 onward, the DOH showed an increasing trend, with figures rising to approximately 113.33 days by June 30, 2022, and further to around 141.55 days by September 30, 2023. The latter figure represents a significant increase in inventory holding periods, suggesting potential challenges in inventory turnover or strategic inventory buildup during this phase.

The upward trend persisted into December 2023, with a DOH of approximately 148.97 days, and continued into the first quarter of 2024, reaching nearly 149.96 days. This indicates an extended duration for inventory to be held before realization as sales, reflecting either deliberate inventory accumulation, supply chain inefficiencies, or a slowdown in inventory turnover.

In the most recent periods, there is a slight decrease in DOH, with figures dropping to about 148.19 days in June 2024, then further to approximately 136.94 days in September 2024, and finally to around 132.83 days in December 2024. As of March 31, 2025, the DOH remains relatively stable at approximately 132.09 days.

Overall, the company's inventory holding period displayed a declining trend from late 2021 through 2024, suggesting improvements in inventory management or sales efficiency. However, the levels remain relatively high compared to industry benchmarks, indicating potentially extended inventory cycles that could impact liquidity and operational efficiency if not managed effectively.