Alpha and Omega Semiconductor Ltd (AOSL)

Days of inventory on hand (DOH)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		2.48	2.44	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	2.77	2.99	2.90
DOH	days	147.21	149.87	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	131.75	121.94	125.81

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.48
= 147.21

Days of Inventory on Hand (DOH) is a measure of how many days a company takes to sell its average inventory. A higher DOH indicates slower inventory turnover and potentially inefficient inventory management.

Analyzing the trend of Alpha and Omega Semiconductor Ltd's DOH over the past several quarters, we can observe fluctuations in the metric. The company's DOH has ranged from as low as 98.02 days to as high as 149.87 days.

In more recent quarters, there seems to be an increase in the DOH, indicating a potential buildup of inventory relative to sales. This could imply increased inventory holding costs and a higher risk of obsolescence or markdowns.

However, a single ratio does not provide a complete picture, and it is crucial to consider other factors and ratios in conjunction with DOH to assess the overall efficiency of inventory management within the company. Further analysis and context are needed to fully evaluate the implications of the DOH trend for Alpha and Omega Semiconductor Ltd.