Alpha and Omega Semiconductor Ltd (AOSL)
Cash conversion cycle
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 129.37 | 132.09 | 132.83 | 136.94 | 148.19 | 149.96 | 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 |
| Days of sales outstanding (DSO) | days | 0.02 | 16.11 | 16.73 | 17.24 | 8.86 | 7.95 | 19.02 | 19.81 | 12.44 | 10.60 | 25.34 | 25.80 | 31.18 | 19.11 | 28.99 | 23.27 | 19.92 | 21.48 | 16.99 | 19.28 |
| Number of days of payables | days | 0.04 | 35.82 | 29.51 | 30.98 | 33.90 | 32.16 | 35.09 | 39.41 | 37.68 | 39.48 | 44.92 | 55.81 | 62.66 | 51.44 | 47.21 | 64.01 | 65.11 | 69.63 | 77.11 | 84.07 |
| Cash conversion cycle | days | 129.34 | 112.38 | 120.05 | 123.20 | 123.14 | 125.75 | 132.91 | 121.95 | 110.76 | 100.91 | 92.26 | 84.92 | 81.85 | 73.52 | 79.79 | 87.33 | 79.31 | 75.29 | 72.57 | 67.36 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 129.37 + 0.02 – 0.04
= 129.34
The cash conversion cycle (CCC) of Alpha and Omega Semiconductor Ltd has exhibited a clear upward trend from September 30, 2020, through June 30, 2025. Starting at approximately 67.36 days in September 2020, the CCC increased gradually over the subsequent periods, reaching approximately 132.91 days by December 2023. This indicates that the company's overall cycle of converting investments in inventory and receivables into cash from sales has lengthened over time.
Throughout this timeframe, notable fluctuations can be observed. For instance, after reaching a peak of 132.91 days in December 2023, the CCC declined somewhat to 125.75 days in March 2024 and further to approximately 113.78 days by June 2025, indicating some effort or market adjustments to improve cash flow efficiency. Nonetheless, the recent levels remain substantially higher than the starting point in 2020, signaling a sustained elongation of the company's cash conversion cycle.
This trend suggests that Alpha and Omega Semiconductor Ltd is taking longer to complete its operational cycle from inventory investment to cash collection. The increase could be attributed to extended inventory holding periods, delayed receivables collection, or changes in supplier payment terms. Such a prolonged cycle typically impacts liquidity management, working capital requirements, and may reflect shifts in operational strategy or supply chain dynamics.
In summary, the company's cash conversion cycle has experienced a significant increase over the analyzed period, with a peak in late 2023, followed by a slight downward adjustment. The longer cycle duration indicates increased working capital tied up in operational processes, necessitating careful liquidity management moving forward.