Alpha and Omega Semiconductor Ltd (AOSL)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	153,498	175,127	195,188	314,352	202,412
Short-term investments	US$ in thousands	—	—	—	100	—
Receivables	US$ in thousands	34,772	15,951	22,420	65,681	35,789
Total current liabilities	US$ in thousands	152,896	154,233	172,561	266,350	233,230
Quick ratio		1.23	1.24	1.26	1.43	1.02

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($153,498K + $—K + $34,772K) ÷ $152,896K
= 1.23

The quick ratio of Alpha and Omega Semiconductor Ltd has demonstrated variability over the observed period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the quick ratio stood at 1.02, indicating that the company had slightly more than enough liquid assets to cover its current liabilities, reflecting a comfortable liquidity position.

By June 30, 2022, the quick ratio increased significantly to 1.43, suggesting an improvement in liquidity and an enhanced ability to meet short-term obligations without relying on inventory sales. This uptick could be indicative of strengthened liquid assets or a reduction in current liabilities, positioning the company favorably for its short-term financial commitments.

However, in subsequent years, a decline in the quick ratio is observed. By June 30, 2023, the ratio decreased to 1.26, and further declined marginally to 1.24 on June 30, 2024. The most recent data point for June 30, 2025, shows a quick ratio of 1.23. Although the ratio remains above 1, indicating that the company still maintains sufficient liquid assets to cover current liabilities, the gradual downward trend suggests a slight erosion of liquidity position over the years.

Overall, the data implies that Alpha and Omega Semiconductor Ltd experienced a peak in short-term liquidity in 2022, followed by a modest decline, yet maintaining a healthy liquidity buffer throughout the period. The steady decline may reflect changes in asset composition, liquidity management strategies, or variations in current liabilities, but the ratio's maintenance above 1 indicates a generally sound liquidity stance during this timeframe.