Alpha and Omega Semiconductor Ltd (AOSL)

Payables 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
Payables	US$ in thousands	60,044	45,084	50,775	87,377	80,699
Payables turnover		8,912.76	10.77	9.69	5.83	5.61

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $535,158,000K ÷ $60,044K
= 8,912.76

The payables turnover ratio of Alpha and Omega Semiconductor Ltd has exhibited a notable upward trend over the analyzed period. As of June 30, 2021, the ratio stood at 5.61, indicating that the company settled its payables approximately 5.61 times within the fiscal year. This figure increased marginally to 5.83 by June 30, 2022, reflecting a slight improvement in the efficiency of managing trade payables.

The upward movement becomes more pronounced in subsequent years, with the ratio reaching 9.69 on June 30, 2023. This significant increase suggests that the company is paying its suppliers more frequently within the year, possibly indicating improved liquidity position, renegotiation of payment terms, or a deliberate strategy to enhance supplier relationships. The upward trajectory continues into the fiscal year ending June 30, 2024, with the ratio climbing to 10.77, further implying accelerated payments and potentially even stronger liquidity management.

However, a substantial anomaly appears in the data for June 30, 2025, where the payables turnover ratio is recorded as 8,912.76. Given the drastic disparity compared to previous values, this figure likely represents a data entry error or a misstatement, as such an extraordinary ratio is not consistent with typical financial patterns and would suggest an implausibly rapid turnover of payables. This anomaly warrants clarification or verification from original financial records.

In summary, the trend from 2021 through 2024 indicates a consistent increase in payables turnover, signifying an improvement in the company's capacity to settle its liabilities more frequently during the fiscal year, which may reflect better cash flow management or strategic payment practices. Nevertheless, the data point for 2025 appears erroneous and should be interpreted with caution until verified.