Alpha and Omega Semiconductor Ltd (AOSL)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 153,498 | 175,127 | 195,188 | 314,352 | 202,412 |
| Short-term investments | US$ in thousands | — | — | — | 100 | — |
| Total current liabilities | US$ in thousands | 152,896 | 154,233 | 172,561 | 266,350 | 233,230 |
| Cash ratio | 1.00 | 1.14 | 1.13 | 1.18 | 0.87 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($153,498K
+ $—K)
÷ $152,896K
= 1.00
The cash ratio of Alpha and Omega Semiconductor Ltd over the period from June 30, 2021, to June 30, 2025, indicates a generally stable liquidity position with regard to its most liquid assets. Specifically, the ratio increased from 0.87 in 2021 to 1.18 in 2022, reflecting an improvement in the company's ability to meet its short-term obligations using cash and cash equivalents alone. This upward trend suggests that in 2022, the company strengthened its liquidity buffer, possibly through increased cash holdings or reduced current liabilities.
In subsequent years, the cash ratio experienced minor fluctuations, maintaining values within a narrow range—1.13 in 2023, 1.14 in 2024, and slightly declining to 1.00 in 2025. The marginal decrease in 2025 implies a slight reduction in cash holdings relative to current liabilities but still indicates that the company retained a cash ratio at or near a 1:1 ratio. This level signifies that Alpha and Omega Semiconductor Ltd consistently maintained sufficient liquidity to cover its immediate short-term liabilities with cash and cash equivalents alone.
Overall, the observed trend illustrates a stable and prudent liquidity management approach, with the company maintaining an adequate cash cushion throughout the analyzed period. The near-constant cash ratio suggests the firm prioritized liquidity stability, which is beneficial for operational flexibility and risk mitigation.