Alpha and Omega Semiconductor Ltd (AOSL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	352,937	351,982	343,951
Inventory	US$ in thousands	195,750	198,098	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	127,395	117,591	118,558
Inventory turnover		2.48	2.44	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	2.77	2.99	2.90

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $485,356K ÷ $195,750K
= 2.48

The inventory turnover ratio for Alpha and Omega Semiconductor Ltd has shown some fluctuations over the past two years, ranging between 2.44 and 3.72. The company's inventory turnover has generally been within the range of 2.44 to 3.72, with an average of around 2.90.

A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. In the case of Alpha and Omega Semiconductor Ltd, the ratio has been above 3 in some periods, which suggests that the company has been able to turn over its inventory relatively quickly during those times.

However, there have been periods where the inventory turnover ratio dipped below 3, indicating a slower rate of inventory turnover. It's essential to analyze the reasons behind these fluctuations in the inventory turnover ratio to understand the company's inventory management practices and efficiency in managing its stock levels.