Alpha and Omega Semiconductor Ltd (AOSL)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	535,158,000	485,356	491,785	508,996	452,359
Inventory	US$ in thousands	189,677	195,750	183,247	158,040	154,293
Inventory turnover		2,821.42	2.48	2.68	3.22	2.93

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $535,158,000K ÷ $189,677K
= 2,821.42

The inventory turnover ratio for Alpha and Omega Semiconductor Ltd has demonstrated fluctuations over the specified periods. As of June 30, 2021, the ratio was 2.93, indicating that the company's inventory was sold and replaced approximately 2.93 times during the fiscal year. This figure increased to 3.22 by June 30, 2022, suggesting an improvement in inventory management efficiency and a faster rate of inventory conversion relative to sales during that period.

However, the trend reversed in subsequent years, with the ratio declining to 2.68 by June 30, 2023, and further decreasing to 2.48 by June 30, 2024. This decline indicates a slowing of inventory turnover, which may suggest that inventory was held longer before being sold, potentially reflecting issues such as decreased demand, excess inventory, or inefficiencies in inventory management.

The data point for June 30, 2025, shows an anomalously high inventory turnover ratio of 2,821.42. This extraordinary figure is likely due to data entry errors or a formatting issue, possibly resulting from the inclusion of an unintended comma or erroneous data entry, rather than representing a realistic measurement. Such an outlier warrants clarification before deriving any substantive conclusions.

Overall, the period from 2021 to 2024 shows a declining trend in inventory turnover, indicating a potential deterioration in inventory management efficiency or changes in sales dynamics. The abrupt and implausible spike in 2025 suggests the need for data verification for accurate interpretation.