Alpha and Omega Semiconductor Ltd (AOSL)

Quick 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
Cash	US$ in thousands	175,127	174,387	162,266	193,576	195,188	265,946	287,805	316,119	314,352	323,134	269,306	252,453	202,412	192,113	180,966	154,698	158,536	110,223	107,249	103,136
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	100	100	100	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	15,647	14,037	33,017	36,378	23,693	21,184	54,911	56,634	66,451	55,016	57,359	41,593	38,064	33,789	24,934	26,317	13,341	17,470	33,955	39,350
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
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

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($175,127K + $—K + $15,647K) ÷ $154,233K
= 1.24

The quick ratio of Alpha and Omega Semiconductor Ltd has shown fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

From December 2019 to March 2021, the quick ratio ranged between 0.67 to 1.90, indicating some variability in the company's short-term liquidity position. The ratio improved significantly in the first half of 2021, reaching a high of 1.90 in March 2021, which suggests the company had a strong ability to cover its short-term liabilities with liquid assets during that period.

Following that peak, the quick ratio decreased steadily throughout 2021 and into 2022, reaching its lowest point of 0.67 in September 2022. This sharp decline may raise concerns about the company's ability to cover its short-term obligations with its current liquid assets.

However, the quick ratio began to improve from the end of 2022 onwards, reaching 1.24 in June 2024. This indicates a positive trend in the company's liquidity position, although it is still below the peak levels seen in early 2021.

Overall, while the quick ratio of Alpha and Omega Semiconductor Ltd has shown variability, the recent improvement suggests a strengthening of the company's ability to meet its short-term obligations with its liquid assets. Monitoring this ratio over time will be important to assess the company's ongoing liquidity position.