Alpha and Omega Semiconductor Ltd (AOSL)

Working capital 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
Total current assets US$ in thousands 399,387 410,294 402,737 398,001 394,551 406,619 439,929 423,936 475,350 517,143 548,142 549,592 517,813 466,707 473,067 407,322 382,356 361,270 331,468 318,333
Total current liabilities US$ in thousands 155,422 151,032 151,737 154,233 159,939 161,596 187,547 172,561 214,317 221,529 244,331 266,350 199,492 177,977 257,106 233,230 211,916 211,513 198,264 192,058
Working capital turnover 2.79 2.57 2.62 2.70 2.80 2.61 2.63 2.75 2.77 2.69 2.63 2.75 2.39 2.52 3.21 3.77 3.53 3.60 3.74 3.68

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $680,974K ÷ ($399,387K – $155,422K)
= 2.79

The analysis of Alpha and Omega Semiconductor Ltd’s working capital turnover reveals trends over the period extending from June 2020 to March 2025.

Initially, the ratio exhibited a modest increase from 3.68 in June 2020 to a peak of 3.77 in June 2021, suggesting a relatively efficient utilization of working capital in generating sales during this early period. However, subsequent data indicates a downward trend, with the ratio decreasing sharply to 2.52 by December 2021, which may reflect a decline in operational efficiency or changes in working capital management practices.

Between 2022 and mid-2023, the ratio stabilized somewhat, fluctuating between approximately 2.39 and 2.77, indicating periods of moderate efficiency. In particular, there is a slight upward movement to 2.80 in March 2024, suggesting some improvement in working capital utilization, but this is followed by a minor decline to 2.57 in December 2024.

Most recently, the ratio shows signs of recovery, rising again to 2.79 by March 2025. Overall, the period reflects significant volatility, with a general trend of decreasing working capital turnover from the early levels, indicating potential challenges faced in efficiently managing working capital relative to sales generation. The fluctuations could be influenced by varying operational, market, or strategic factors impacting the company’s working capital cycle.