Alpha and Omega Semiconductor Ltd (AOSL)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	161,151	161,529	165,519	171,918	175,062	170,293	179,333	199,536	218,177	259,793	275,117	268,556	265,914	246,203	226,587	204,543	172,897	142,665	118,322	102,731
Revenue (ttm)	US$ in thousands	680,974	666,399	658,528	657,274	657,503	640,003	663,478	691,321	723,755	794,434	798,993	777,552	760,902	726,875	692,386	656,902	601,988	539,628	498,658	464,909
Gross profit margin		23.66%	24.24%	25.13%	26.16%	26.63%	26.61%	27.03%	28.86%	30.15%	32.70%	34.43%	34.54%	34.95%	33.87%	32.73%	31.14%	28.72%	26.44%	23.73%	22.10%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $161,151K ÷ $680,974K
= 23.66%

The gross profit margin of Alpha and Omega Semiconductor Ltd exhibits a notable upward trend from June 30, 2020, reaching a peak of 34.95% as of March 31, 2022. This positive trajectory indicates an improvement in the company's ability to manage production costs relative to revenue, possibly driven by increased operational efficiencies, better product mix, or favorable pricing strategies during this period.

However, starting from the second quarter of 2022, the gross profit margin gradually declines, decreasing from 34.54% to 27.03% by September 30, 2023. This downward movement suggests potential pressures on profit margins, such as increasing costs of goods sold, pricing competition, or a shift in product mix toward lower-margin offerings. The margin continues to erode into the subsequent quarters, reaching approximately 23.66% by March 31, 2025.

Overall, the data indicates a significant margin expansion in the early years, followed by a consistent contraction in more recent periods. The recent levels of gross profit margin are lower than the historical peak, reflecting ongoing challenges in maintaining higher profitability amid evolving market or operational factors.