Alpha and Omega Semiconductor Ltd (AOSL)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 42.01 46.84 19.38 18.24 29.18 34.17 14.47 14.11 11.70 13.83 12.67 16.65 17.26 17.82 21.64 18.95 34.85 26.01 13.45 11.53
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
Working capital turnover 2.70 2.80 2.61 2.63 2.75 2.77 2.69 2.63 2.76 2.39 2.52 3.21 3.77 3.53 3.60 3.74 3.68 4.49 4.14 4.35

Alpha and Omega Semiconductor Ltd's inventory turnover ratio has been relatively stable over the past two years, ranging from 2.44 to 3.72. This indicates that the company is efficiently managing its inventory levels and turning over its inventory into sales. However, there was a slight decrease in inventory turnover in the latest quarter compared to the previous quarter.

The receivables turnover ratio has varied significantly, with a high of 46.84 and a low of 11.53 over the past two years. This suggests that the company's collection of receivables has been inconsistent, possibly indicating varying credit policies or customer payment behavior. The most recent quarter showed an improvement in receivables turnover compared to the previous quarter.

The payables turnover ratio shows how quickly the company is paying its suppliers. The data provided does not include information for the first two quarters of 2023, but from the available data, there is a decreasing trend in payables turnover, implying that the company is taking longer to pay its creditors. This could potentially strain supplier relationships if not managed effectively.

The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Alpha and Omega Semiconductor Ltd's working capital turnover has been relatively stable, with fluctuations over the past two years but generally indicating efficient utilization of working capital to generate revenue. The last quarter showed a decrease in working capital turnover compared to the previous quarter, which may warrant further investigation into the company's operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 147.21 149.87 148.97 141.55 136.00 129.79 111.84 114.92 113.33 105.84 98.02 128.07 124.50 123.44 132.69 132.15 136.58 131.75 121.94 125.81
Days of sales outstanding (DSO) days 8.69 7.79 18.83 20.01 12.51 10.68 25.23 25.87 31.19 26.39 28.80 21.93 21.15 20.49 16.87 19.26 10.47 14.03 27.14 31.66
Number of days of payables days — — — — — 39.48 44.92 55.81 62.66 51.44 47.21 64.01 65.11 69.63 77.11 84.07 86.85 90.98 93.06 98.59

Days of inventory on hand (DOH) for Alpha and Omega Semiconductor Ltd has been consistently high over the past few quarters, indicating that the company holds inventory for an extended period before it is sold. This could potentially signify inefficiencies in inventory management or possible challenges in forecasting demand accurately.

Days of sales outstanding (DSO) for the company have shown fluctuations but generally stayed at relatively low levels, which suggests that Alpha and Omega Semiconductor Ltd collects its accounts receivable quickly. A lower DSO is typically favorable as it signifies efficient credit management and prompt collection of revenues.

The number of days of payables for Alpha and Omega Semiconductor Ltd has been increasing steadily, reflecting a lengthening payment period to its suppliers. While stretching payables can help with cash flow management, excessively delaying payments may damage relationships with suppliers.

In conclusion, while the company appears to be managing its receivables well with low DSO, attention may be needed to optimize inventory levels and monitor payables to maintain healthy working capital management.

Long-term

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
Fixed asset turnover 1.95 1.94 1.83 1.87 1.93 2.02 2.26 2.35 2.44 3.10 3.69 1.57 1.50 1.39 1.25 1.18 1.13 1.10 1.10 1.12
Total asset turnover 0.57 0.57 0.54 0.55 0.58 0.58 0.62 0.61 0.60 0.63 0.65 0.70 0.72 0.69 0.63 0.61 0.59 0.59 0.59 0.59

Alpha and Omega Semiconductor Ltd's long-term activity ratios show the efficiency with which the company utilizes its assets to generate revenue.

The fixed asset turnover ratio has been fluctuating over the periods analyzed, ranging from a low of 1.10 to a high of 3.69. This ratio indicates the company's ability to generate sales from its fixed assets, such as property, plant, and equipment. A higher ratio suggests better efficiency in utilizing fixed assets to generate revenue. The company saw a significant decline in this ratio in the later periods, indicating a potential decrease in the efficiency of utilizing fixed assets to generate sales compared to the earlier periods.

On the other hand, the total asset turnover ratio has also been fluctuating, but to a lesser extent, with a range from 0.54 to 0.72. This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio indicates better efficiency in generating revenue from all assets. While the total asset turnover ratio has been relatively more stable compared to the fixed asset turnover ratio, it indicates a slight decrease over the periods analyzed, suggesting a potentially decreasing efficiency in utilizing all assets to generate sales.

Overall, Alpha and Omega Semiconductor Ltd's long-term activity ratios suggest some fluctuations in asset efficiency over the periods analyzed, with the fixed asset turnover showing more volatility compared to the total asset turnover. Further investigation into the company's asset management practices and business operations may be warranted to understand the reasons behind these fluctuations.