Alpha and Omega Semiconductor Ltd (AOSL)

Payables 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
Payables	US$ in thousands	—	—	—	—	—	54,689	65,799	80,101	87,377	69,758	62,175	81,681	80,699	81,858	83,859	87,604	86,181	87,973	89,741	92,905
Payables turnover		—	—	—	—	—	9.24	8.13	6.54	5.83	7.10	7.73	5.70	5.61	5.24	4.73	4.34	4.20	4.01	3.92	3.70

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $485,356K ÷ $—K
= —

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable during a certain period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could suggest good relationships with suppliers and prudent cash management.

In the case of Alpha and Omega Semiconductor Ltd, the payables turnover ratio has fluctuated over the past few quarters. From the available data, we see an increasing trend in the payables turnover ratio from 3.70 in September 2019 to 9.24 in March 2023. This indicates that the company may have been paying its suppliers more frequently and efficiently during this period.

However, the payables turnover ratio experienced a slight decline in the most recent quarter for which data is available, dropping to 5.83 in March 2022. This decrease could potentially raise concerns about the company's ability to manage its accounts payable effectively. It is important to note that a declining payables turnover ratio could suggest a shift in the company's payment practices or challenges in maintaining good relationships with suppliers.

Overall, a comprehensive analysis of Alpha and Omega Semiconductor Ltd's payables turnover ratio would involve further investigation into the reasons behind the fluctuations in the ratio and assessing the impact on the company's financial health and operational efficiency.