Alpha and Omega Semiconductor Ltd (AOSL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	657,274	657,503	640,003	663,478	691,321	723,755	794,434	798,993	777,552	760,902	726,875	692,386	656,902	601,988	539,628	498,658	464,909	454,370	456,585	453,650
Property, plant and equipment	US$ in thousands	336,619	339,515	349,046	354,229	357,831	358,157	350,950	339,470	318,666	245,770	196,743	441,279	436,977	432,569	430,808	421,642	412,340	412,318	416,055	404,005
Fixed asset turnover		1.95	1.94	1.83	1.87	1.93	2.02	2.26	2.35	2.44	3.10	3.69	1.57	1.50	1.39	1.25	1.18	1.13	1.10	1.10	1.12

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $657,274K ÷ $336,619K
= 1.95

The fixed asset turnover of Alpha and Omega Semiconductor Ltd has fluctuated over the periods provided. The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.

From December 2019 to March 2022, the fixed asset turnover ratio showed an increasing trend, peaking at 3.69 in March 2022, which indicates that the company was effectively utilizing its fixed assets to generate revenue during this period. However, the ratio started declining from March 2022 to June 2023, indicating a potential decrease in the efficiency of asset utilization.

From June 2023 to Jun 2024, the ratio fluctuated between 1.83 and 1.95, suggesting some stability in the utilization of fixed assets to generate revenue but not at the same level seen in the earlier period. Overall, the company should monitor its fixed asset turnover ratio to ensure optimal utilization of its fixed assets for revenue generation in the future.