Alpha and Omega Semiconductor Ltd (AOSL)

Cash ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	175,127	174,387	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	110,223	107,249	103,136
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	100	100	100	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	154,233	159,939	161,596	187,547	172,561	214,317	221,529	244,331	267,722	199,492	177,977	257,106	233,230	211,916	211,513	198,264	192,058	190,834	185,009	190,071
Cash ratio		1.14	1.09	1.00	1.03	1.13	1.24	1.30	1.29	1.17	1.62	1.51	0.98	0.87	0.91	0.86	0.78	0.83	0.58	0.58	0.54

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($175,127K + $—K) ÷ $154,233K
= 1.14

The cash ratio for Alpha and Omega Semiconductor Ltd has displayed fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

From December 2019 to March 2020, the cash ratio remained relatively stable around 0.58, indicating the company had sufficient cash to cover its short-term liabilities during this period. However, from March 2020 to September 2022, there was an increasing trend in the cash ratio, reaching a peak of 1.62 in March 2022. This significant increase suggests an improvement in the company's liquidity position and its ability to meet short-term obligations comfortably.

Subsequently, there was a slight decline in the cash ratio from March 2022 to December 2023, hovering around the range of 1.00 to 1.30. This range indicates that the company continued to maintain a strong liquidity position despite the slight fluctuations.

The cash ratio dipped to 0.98 in March 2024, indicating a potential decrease in the company's ability to cover current liabilities with cash and cash equivalents. However, it rebounded to 1.09 in March 2024, suggesting a recovery in liquidity.

In the most recent quarter, June 2024, the cash ratio increased further to 1.14, reflecting an improvement in the company's ability to cover short-term obligations with cash on hand.

Overall, the trend in Alpha and Omega Semiconductor Ltd's cash ratio shows fluctuations but generally indicates a sufficient level of liquidity to cover its short-term liabilities, with some periods of stronger liquidity positions. However, it is essential to monitor future developments to ensure continued financial stability.