Alpha and Omega Semiconductor Ltd (AOSL)

Current 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
Total current assets US$ in thousands 399,387 410,294 402,737 398,001 394,551 406,619 439,929 423,936 475,350 517,143 548,142 549,592 517,813 466,707 473,067 407,322 382,356 361,270 331,468 318,333
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
Current ratio 2.57 2.72 2.65 2.58 2.47 2.52 2.35 2.46 2.22 2.33 2.24 2.06 2.60 2.62 1.84 1.75 1.80 1.71 1.67 1.66

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $399,387K ÷ $155,422K
= 2.57

The analysis of Alpha and Omega Semiconductor Ltd’s current ratio over the period from June 2020 through March 2025 indicates a consistent overall level of liquidity. The current ratio, which measures the company’s ability to meet its short-term obligations with its short-term assets, has generally remained above 1.5, suggesting a stable liquidity position throughout this period.

Initially, the ratio started at 1.66 in June 2020 and experienced a slight uptick, reaching 1.84 by September 2021. A notable increase occurred in December 2021, where the ratio surged to 2.62, indicating improved short-term liquidity and possibly increased current assets relative to current liabilities. This elevated level persisted into the first quarter of 2022 at 2.60 before experiencing a decline in subsequent quarters, falling to 2.06 by June 2022 and fluctuating in the range of approximately 2.2 to 2.3 during the rest of 2022 and into 2023.

From 2023 onward, there has been a gradual upward trend in the current ratio, culminating at approximately 2.72 in December 2024, before a slight decline to 2.57 in March 2025. This indicates a relatively stable liquidity position with a slight positive trend towards year-end 2024, reflecting potential improvements in the company’s liquidity management or changes in current asset composition.

Overall, the current ratio for Alpha and Omega Semiconductor Ltd demonstrates prudent liquidity management, maintaining a comfortable margin above the critical 1:1 threshold. The stability and gradual improvement in recent years suggest that the company is effectively managing its short-term assets and liabilities, although ongoing monitoring is recommended to ensure these levels are maintained in the face of potential market or operational changes.