Alpha and Omega Semiconductor Ltd (AOSL)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.13% | 26.16% | 28.86% | 34.54% | 31.14% |
| Operating profit margin | -4.08% | -0.57% | 3.26% | 13.12% | 1.73% |
| Pretax margin | -14.95% | -0.40% | 2.85% | 63.67% | 9.17% |
| Net profit margin | -0.01% | -1.69% | 1.79% | 58.28% | 8.85% |
The profitability ratios of Alpha and Omega Semiconductor Ltd over the specified period reveal significant fluctuations and trends.
Gross profit margin experienced an initial increase from 31.14% on June 30, 2021, to a peak of 34.54% on June 30, 2022, indicating improved efficiency in core operations and better cost control during that year. However, subsequent years saw a decline, with gross profit margin decreasing to 28.86% by June 30, 2023, and further dropping to 26.16% in the following year, culminating at 23.13% by June 30, 2025. This downward trend suggests rising cost pressures or pricing challenges affecting the company's gross profitability.
Operating profit margin showed a substantial improvement from 1.73% in 2021 to an impressive 13.12% in 2022, reflecting substantial operational efficiency gains or cost reductions. Nevertheless, this momentum was not sustained; the operating margin plummeted to 3.26% in 2023 and turned negative thereafter, reaching -0.57% in 2024 and further declining to -4.08% in 2025. The negative operating margins indicate operational profitability concerns, with expenses exceeding revenues during these years.
Pretax margin followed a similar pattern, rising sharply to 63.67% in 2022 from 9.17% in 2021, suggesting a highly favorable tax or non-operational income impact that year. Subsequent years saw a dramatic decline, with pretax margin dropping to 2.85% in 2023, turning negative at -0.40% in 2024, and decreasing further to -14.95% in 2025, confirming deteriorating pre-tax profitability.
Net profit margin exhibited parallel trends, rising from 8.85% in 2021 to a peak of 58.28% in 2022, indicating strong overall profitability that year possibly aided by extraordinary items or tax benefits. However, net profit margins declined sharply afterward, nearly erasing profit by 2023 with a margin of 1.79%, turning negative to -1.69% in 2024, and approaching zero at -0.01% in 2025. The trend signifies mounting net profitability challenges and increasing losses during the later periods.
Overall, these ratios reflect a period of initial strong profitability in 2022, followed by a substantial and sustained decline from 2023 onward, characterized by shrinking gross margins and negative operational, pre-tax, and net margins, which highlight growing profitability concerns for the company in the years beyond 2022.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2,753.59% | -0.33% | 1.88% | 7.86% | 1.24% |
| Return on assets (ROA) | -9.39% | -0.97% | 1.03% | 34.90% | 6.33% |
| Return on total capital | -3.46% | -0.42% | 2.55% | 11.95% | 17.17% |
| Return on equity (ROE) | -11.79% | -1.24% | 1.40% | 53.06% | 15.57% |
The profitability ratios of Alpha and Omega Semiconductor Ltd exhibit significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025.
The Operating Return on Assets (Operating ROA) started at 1.24% in 2021, demonstrated a substantial improvement to 7.86% in 2022, but declined sharply to 1.88% in 2023. Subsequently, it turned negative at -0.33% in 2024 and showed a steep deterioration to -2,753.59% in 2025, indicating an extraordinary and likely extraordinary loss or impairment one year, which severely impacted operational profitability.
Similarly, the Return on Assets (ROA) experienced a robust rise from 6.33% in 2021 to a peak of 34.90% in 2022, before falling sharply to 1.03% in 2023. The trend continued downward into 2024 with a negative return of -0.97%, culminating in a drastically negative value of -9.39% in 2025, reflecting severe losses relative to total assets.
The Return on Total Capital (ROTC) followed a comparable pattern, starting at 17.17% in 2021 and decreasing to 11.95% in 2022 before collapsing to 2.55% in 2023. The subsequent years sawthis ratio turn negative at -0.42% in 2024 and further decline to -3.46% in 2025, indicating deteriorating profitability from all sources of capital.
The Return on Equity (ROE) demonstrated a remarkable increase from 15.57% in 2021 to an elevated 53.06% in 2022, reflecting strong shareholder returns during that period. However, this metric plummeted to 1.40% in 2023 and turned negative at -1.24% in 2024, ultimately collapsing to -11.79% in 2025. These negative figures highlight serious challenges in generating profits attributable to equity shareholders, suggesting losses and diminished shareholder value.
Overall, the data indicates that Alpha and Omega Semiconductor Ltd experienced a period of strong profitability in 2022, followed by a dramatic downturn in subsequent years. The negative ratios in 2024 and 2025 suggest significant financial distress, potentially due to operational issues, extraordinary losses, or other adverse factors impacting profitability metrics substantially.