Alpha and Omega Semiconductor Ltd (AOSL)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	398,001	423,936	549,592	407,322	318,333
Total current liabilities	US$ in thousands	154,233	172,561	267,722	233,230	192,058
Current ratio		2.58	2.46	2.05	1.75	1.66

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $398,001K ÷ $154,233K
= 2.58

The current ratio of Alpha and Omega Semiconductor Ltd has shown an improving trend over the past five years, increasing from 1.66 in 2020 to 2.58 in 2024. This indicates the company's ability to meet its short-term obligations with its current assets has strengthened over time. A current ratio above 1 implies that the company has more current assets than current liabilities, suggesting a healthy liquidity position.

The current ratio surpassed 2 in 2023 and further improved in 2024, indicating that the company is in a better position to cover its short-term liabilities with current assets. This trend suggests that Alpha and Omega Semiconductor Ltd has been effectively managing its working capital and maintaining a strong financial position. Overall, the increasing current ratio trend is a positive sign of the company's liquidity and ability to meet its short-term obligations.