Alpha and Omega Semiconductor Ltd (AOSL)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 519,823 504,870 493,009 485,356 482,441 469,710 484,145 491,785 505,578 534,641 523,876 508,996 494,988 480,672 465,799 452,359 429,091 396,963 380,336 362,178
Inventory US$ in thousands 188,126 183,733 184,968 197,051 198,213 191,709 187,751 183,247 179,783 163,823 164,946 158,040 143,538 129,084 163,437 154,293 145,110 144,307 137,700 135,528
Inventory turnover 2.76 2.75 2.67 2.46 2.43 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

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $519,823K ÷ $188,126K
= 2.76

The inventory turnover ratios of Alpha and Omega Semiconductor Ltd over the given periods demonstrate a relatively stable pattern with some fluctuations, reflecting the company's efficiency in managing its inventory levels relative to sales.

From June 30, 2020, to September 30, 2020, the ratio increased slightly from 2.67 to 2.76, indicating a modest improvement in inventory management and faster turnover. This upward trend continued through December 31, 2020, reaching 2.75, and further increased to 2.96 by March 31, 2021, signaling enhanced efficiency in converting inventory into sales.

The ratio remained relatively stable through June and September 2021, at 2.93 and 2.85 respectively, before experiencing a notable rise to 3.72 at the end of 2021, suggesting a period of improved inventory management or increased sales activity relative to inventory holdings.

In 2022, the ratio decreased slightly from 3.45 in March to 3.22 in June, and further to 3.18 by September, indicating a slight slowdown or buildup of inventory. It then edged upward again to 3.26 by December 2022. The first quarter of 2023 saw a decrease to 2.81, followed by a downward trend to 2.68 in June, and 2.58 in September, reflecting potentially increased inventory levels or decreased sales momentum.

By December 2023, the ratio was 2.45, and it remained relatively stable through the first quarter of 2024 at 2.43, before increasing slightly in subsequent quarters to 2.46 in June, 2.67 in September, and 2.75 in December 2024. The ratio continued a steady upward trend into March 2025, reaching 2.76.

Overall, the inventory turnover has experienced periods of both improvement and decline, with a notable peak at the end of 2021. The fluctuations suggest the company has faced varying inventory management efficiencies, possibly influenced by seasonal demand, supply chain dynamics, or strategic inventory adjustments. While the ratio generally oscillates around an average of approximately 2.7 to 3.0, the temporary peaks and troughs reflect a dynamic inventory management environment, with no clear long-term trend toward either increase or decrease.