Alpha and Omega Semiconductor Ltd (AOSL)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	657,274	691,321	777,552	656,902	464,909
Total current assets	US$ in thousands	398,001	423,936	549,592	407,322	318,333
Total current liabilities	US$ in thousands	154,233	172,561	267,722	233,230	192,058
Working capital turnover		2.70	2.75	2.76	3.77	3.68

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $657,274K ÷ ($398,001K – $154,233K)
= 2.70

The working capital turnover ratio for Alpha and Omega Semiconductor Ltd has shown a slight decline over the past three years, from 3.77 in 2021 to 2.70 in 2024. This indicates that the company is generating less revenue relative to its working capital in the most recent period.

Although the working capital turnover ratio has fluctuated, it remains relatively stable around the range of 2.70 to 3.77 over the past five years. This suggests that Alpha and Omega Semiconductor Ltd is effectively utilizing its working capital to generate sales, with an average turnover of approximately 3 times per year.

However, the declining trend in the recent years may indicate a potential inefficiency in managing working capital effectively to support sales growth. It is important for the company to monitor and optimize its working capital management to improve efficiency and profitability in the future.