Alpha and Omega Semiconductor Ltd (AOSL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.24 | 1.18 | 1.21 | 1.23 | 1.27 | 1.34 | 1.55 | 1.53 | 1.42 | 1.90 | 1.84 | 1.14 | 1.03 | 1.07 | 0.97 | 0.91 | 0.89 | 0.67 | 0.76 | 0.75 |
| 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 |
The liquidity ratios of Alpha and Omega Semiconductor Ltd indicate the company's ability to meet its short-term obligations effectively.
The current ratio has shown a relatively consistent trend over the periods analyzed, ranging from 1.53 to 2.62. The company's current assets have generally been sufficient to cover its current liabilities, with a current ratio above 1 indicating good short-term liquidity. Despite some fluctuations, the current ratio has stayed within a healthy range, suggesting that the company can easily meet its short-term financial commitments.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown stability over the periods assessed. Ranging from 0.67 to 1.90, the quick ratio indicates the company's ability to meet short-term obligations without relying on inventory sales. The quick ratio has generally remained above 1, signaling a strong ability to meet immediate liabilities with liquid assets.
The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, has displayed a similar trend of stability over the periods examined. Ranging from 0.54 to 1.62, the cash ratio reflects Alpha and Omega Semiconductor Ltd's potential to settle short-term obligations solely with cash resources. The consistent level of the cash ratio above 1 suggests that the company has maintained a healthy cash position relative to its short-term liabilities.
Overall, the liquidity ratios of Alpha and Omega Semiconductor Ltd indicate a sound financial position in terms of its ability to meet short-term obligations. The company's ability to maintain adequate levels of liquid assets relative to its current liabilities suggests a strong liquidity position, which is crucial for sustaining operations and weathering short-term financial challenges.
Additional liquidity measure
| 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 conversion cycle | days | 155.90 | 157.67 | 167.80 | 161.56 | 148.51 | 100.99 | 92.15 | 84.99 | 81.87 | 80.80 | 79.61 | 85.99 | 80.53 | 74.29 | 72.45 | 67.34 | 60.21 | 54.80 | 56.02 | 58.88 |
The cash conversion cycle of Alpha and Omega Semiconductor Ltd has shown fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its resource inputs into cash inflows.
In the most recent quarter, the cash conversion cycle was 155.90 days, indicating that it took the company approximately 155.90 days to convert its investments in inventory and other resources into cash receipts from sales. This is a slight improvement from the previous quarter, where the cycle was 157.67 days.
Looking at historical data, there has been some variability in the cash conversion cycle, with some quarters showing longer cycles and others shorter. The longest cycle in recent quarters was recorded in December 2023 at 167.80 days, while the shortest cycle was observed in March 2021 at 72.45 days.
Overall, a decreasing cash conversion cycle is generally seen as a positive indicator, as it suggests that the company is able to manage its working capital efficiently and turn its investments into cash more quickly. However, it is important to closely monitor any significant changes in the cash conversion cycle to understand the underlying reasons and implications for the company's financial performance and liquidity position.