Alpha and Omega Semiconductor Ltd (AOSL)

Current 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
Total current assets	US$ in thousands	398,001	394,551	406,619	439,929	423,936	475,350	517,143	548,142	549,592	517,813	466,707	473,067	407,322	382,356	361,270	331,468	318,333	291,931	295,323	294,396
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
Current ratio		2.58	2.47	2.52	2.35	2.46	2.22	2.33	2.24	2.05	2.60	2.62	1.84	1.75	1.80	1.71	1.67	1.66	1.53	1.60	1.55

June 30, 2024 calculation

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

Alpha and Omega Semiconductor Ltd's current ratio has shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally been above 2, indicating that the company has a healthy level of liquidity to meet its short-term obligations.

In the most recent quarter, ending June 30, 2024, the current ratio stood at 2.58, showing an improvement from the previous quarter's 2.47. This suggests that the company's liquidity position has strengthened, as it now has $2.58 in current assets for every $1 in current liabilities.

However, it is worth noting that there have been instances of the current ratio declining in the past, such as in the quarters ending March 31, 2023, and September 30, 2021, where the ratio fell below 2. This could indicate potential liquidity issues during those periods.

Overall, a current ratio above 2 is generally considered healthy, as it indicates that the company has more than enough short-term assets to cover its short-term liabilities. Investors and creditors typically look for stable or improving current ratios as a sign of financial stability and sound liquidity management.