Alpha and Omega Semiconductor Ltd (AOSL)

Alpha and Omega Semiconductor Ltd's Days Sales Outstanding (DSO) measures the average number of days it takes the company to collect revenue after making a sale. A lower DSO indicates faster cash conversion, which is generally preferable.

Analyzing the trend in Alpha and Omega Semiconductor Ltd's DSO over the past five years, we observe fluctuations. In 2020, the DSO was relatively low at 10.47 days, suggesting efficient accounts receivable management. However, the DSO increased significantly in 2021 to 21.15 days, signaling a potential slowdown in collections.

In 2022, the DSO spiked to 31.19 days, indicating an extended collection period, which could be a concern in terms of liquidity and working capital management. The company managed to improve its DSO in 2023 to 12.51 days, which was a positive development, showing efforts to streamline its accounts receivable processes.

In the latest period, as of June 30, 2024, Alpha and Omega Semiconductor Ltd further reduced its DSO to 8.69 days, reaching a level lower than the initial period in 2020. This improvement suggests that the company has been more effective in collecting payments from customers, potentially enhancing cash flows and overall financial health.

Overall, while there have been fluctuations in Alpha and Omega Semiconductor Ltd's DSO over the past five years, the recent trend of decreasing DSO highlights the company's efforts to manage accounts receivable efficiently, which is a positive sign for its financial performance and liquidity position. Tracking DSO over time allows investors and stakeholders to gauge the company's effectiveness in managing its receivables and its ability to convert sales into cash.

Peer comparison

Jun 30, 2024