Alpha and Omega Semiconductor Ltd (AOSL)

Days of sales outstanding (DSO)

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
Receivables turnover 22.66 21.82 21.17 41.21 45.92 19.19 19.29 30.84 37.24 14.40 14.33 11.84 19.41 12.59 15.69 18.35 16.99 21.64 18.95 35.03
DSO days 16.11 16.73 17.24 8.86 7.95 19.02 18.93 11.84 9.80 25.34 25.48 30.83 18.81 28.99 23.27 19.89 21.48 16.87 19.26 10.42

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.66
= 16.11

The analysis of Alpha and Omega Semiconductor Ltd’s Days Sales Outstanding (DSO) over the period from June 2020 to March 2025 reveals notable fluctuations indicative of the company's evolving credit and collection practices, as well as potential changes in customer payment behavior.

Initially, the DSO was approximately 10.42 days as of June 2020, reflecting a relatively efficient collection process. However, there was a significant increase over the subsequent quarters, reaching a peak of 28.99 days at the end of December 2021. This upward trend suggests that the company's average collection period lengthened considerably during this time, potentially due to extended credit terms offered to customers, difficulties in collections, or shifts in the customer base.

From December 2021, the DSO exhibited variability, decreasing notably to 18.81 days by March 2022, and subsequently rising again to over 30 days by June 2022. This volatility points to intermittent changes in collection efficiency or credit policies. The peak around June 2022 may imply increased receivables aging or tighter credit controls loosened temporarily.

Following this period, the DSO generally stabilized at lower levels, with figures such as 25.48 days in September 2022 and around 25.34 days in December 2022, indicating some improvement in receivables management. A marked reduction occurred by March 2023, when the DSO fell sharply to 9.80 days, suggesting significant enhancements in collection processes or shorter credit terms.

In subsequent quarters, the DSO entered a relatively stable yet somewhat fluctuating phase, with values around 8.86 days in June 2024 and slightly higher at 17.24 days in September 2024 and 16.73 days in December 2024. The March 2025 reading of 16.11 days falls within this range, demonstrating a level of consistency in receivables collection.

Overall, the DSO trend over the analyzed period indicates periods of contraction and expansion, with a marked improvement in early 2023 post a peak in late 2021. These movements could reflect strategic adjustments in credit policies, collection efficiency, or shifts in customer payment terms. Continuous monitoring is essential to ascertain whether these fluctuations are temporary or indicative of underlying changes influencing the company's receivables management and cash flow cycle.