Alpha and Omega Semiconductor Ltd (AOSL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	169,359	182,592	176,008	175,540	174,595	162,266	193,576	195,188	265,946	287,805	316,119	314,352	323,134	269,306	252,453	202,412	192,113	180,966	154,698	158,536
Short-term investments	US$ in thousands	—	355,088	214	—	—	—	—	—	—	—	100	100	100	—	—	—	—	—	—	—
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
Cash ratio		1.09	3.56	1.16	1.14	1.09	1.00	1.03	1.13	1.24	1.30	1.29	1.18	1.62	1.51	0.98	0.87	0.91	0.86	0.78	0.83

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($169,359K + $—K) ÷ $155,422K
= 1.09

The cash ratio of Alpha and Omega Semiconductor Ltd demonstrates notable fluctuations over the analyzed period from June 30, 2020, through March 31, 2025. Initially, the ratio hovered below 1. indicating that the company's cash holdings were generally insufficient to cover its current liabilities solely through cash or cash equivalents. For example, the ratio stood at 0.83 on June 30, 2020, and experienced minor declines and increases, reaching a low of approximately 0.78 in September 2020.

Subsequently, the company saw a gradual upward trend in its cash ratio, peaking at 1.62 on March 31, 2022. This indicates a period where cash reserves adequately exceeded or matched current liabilities, reflecting a more conservative liquidity position relative to earlier periods. The improvement suggests effective management of liquid assets, possibly driven by strategic cash accumulation or reduced short-term obligations.

From March 2022 onward, the cash ratio fluctuated but generally remained above 1, indicating that the company retained sufficient cash to meet its immediate liabilities. Notably, the ratio reached 3.56 on December 31, 2024, which represents a significant leap compared to prior figures. This sharp increase suggests a substantial accumulation of cash assets relative to current liabilities, which may be indicative of a strategic reserve buildup, deferred investments, or other liquidity management decisions.

Following this peak, the ratio decreased to 1.09 in March 2025, approaching more typical levels but still indicating that cash holdings remained roughly in line with current liabilities. Overall, the company's cash ratio trend reflects periods of liquidity conservation and cautious cash management, with marked phases of increased liquidity that could signal buffer-building or strategic retreats from illiquid assets. The fluctuations highlight a dynamic liquidity management approach, balancing operational needs with preparedness for uncertainties or investment opportunities.