Alpha and Omega Semiconductor Ltd (AOSL)

Receivables 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
Revenue (ttm)	US$ in thousands	680,974	666,399	658,528	657,274	657,503	640,003	663,478	691,321	723,755	794,434	798,993	777,552	760,902	726,875	692,386	656,902	601,988	539,628	498,658	464,909
Receivables	US$ in thousands	30,047	30,542	31,103	15,951	14,317	33,357	34,403	22,420	19,434	55,154	55,769	65,681	39,207	57,724	44,135	35,789	35,432	24,934	26,317	13,272
Receivables turnover		22.66	21.82	21.17	41.21	45.92	19.19	19.29	30.84	37.24	14.40	14.33	11.84	19.41	12.59	15.69	18.35	16.99	21.64	18.95	35.03

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $680,974K ÷ $30,047K
= 22.66

The receivables turnover ratio of Alpha and Omega Semiconductor Ltd exhibits notable fluctuations over the analyzed period. At the end of June 2020, the ratio was exceptionally high at 35.03, indicating that the company was able to collect receivables approximately 35 times within the fiscal year. This high ratio suggests an efficient collection process and strong credit management at that time.

However, subsequent quarters show a significant decline, with the ratio decreasing to 18.95 by September 2020, and further dropping to 12.59 by December 2021. This downward trend implies a lengthening of accounts receivable collection periods, potentially signaling looser credit policies, increased credit sales, or challenges in collecting outstanding accounts during this period.

Between March 2021 and June 2022, the receivables turnover ratio remained relatively lower, fluctuating between approximately 11.84 and 19.41, reflecting continued variability in collection efficiency. It is notable that during this interval, the ratio remained below the initial levels observed in mid-2020, indicating a possible period of less effective receivables management.

A significant reversal occurs starting from March 2023, when the ratio jumps sharply to 37.24, surpassing previous highs and indicating a marked improvement in receivables collection efficiency. This positive shift is sustained through June 2023, with a ratio of 30.84, before gradually declining to around 19.29-21.82 in late 2023 and early 2024.

Most notably, in March 2024, the ratio reaches a new peak of 45.92, the highest observed within the timeframe, suggesting an exceptional level of receivables collection efficiency at that point. This high ratio continues through June 2024 at 41.21, although it declines somewhat in subsequent quarters.

Overall, the data reveals a pattern characterized by periods of decreased collection efficiency (notably from late 2020 through early 2022), followed by a dramatic improvement starting in 2023. The recent high ratios imply enhanced credit management practices or possibly changes in customer creditworthiness, leading to faster receivables turnover. Such improvements could positively impact cash flow, although they should be analyzed in conjunction with other financial metrics to assess the overall financial health of the company.