Alpha and Omega Semiconductor Ltd (AOSL)

Operating 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
Operating income (ttm)	US$ in thousands	-18,317	-18,163	-13,389	-3,756	355	-4,046	5,873	12,658	19,598	57,132	76,064	84,847	97,658	92,825	78,698	64,076	40,386	13,971	-2,989	-13,937
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
Operating profit margin		-2.69%	-2.73%	-2.03%	-0.57%	0.05%	-0.63%	0.89%	1.83%	2.71%	7.19%	9.52%	10.91%	12.83%	12.77%	11.37%	9.75%	6.71%	2.59%	-0.60%	-3.00%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-18,317K ÷ $680,974K
= -2.69%

The operating profit margin of Alpha and Omega Semiconductor Ltd exhibits significant fluctuations over the analyzed period. Starting from a negative value of -3.00% as of June 30, 2020, the margin improved markedly, reaching a positive peak of 12.83% by March 31, 2022. This upward trajectory indicates a period of expanding profitability, with the company progressively reducing operational losses and ultimately generating substantial operating income relative to revenues during this interval.

Post-March 2022, the operating profit margin demonstrates a declining trend. It decreased to 10.91% as of June 30, 2022, and further contracted to 7.19% by December 31, 2022. The negative trend persisted into 2023, with the margin falling sharply to 2.71% in March 2023, continuing downward to 0.89% by September 2023. By the end of the year, the margin entered negative territory at -0.63% on December 31, 2023, indicating that operating expenses exceeded operating revenues during this period.

In the subsequent quarters of 2024, the operating profit margin continues to deteriorate, registering values of 0.05% in March, -0.57% in June, -2.03% in September, and moving further into negative territory at -2.73% by December 31, 2024. The trend persists into the first quarter of 2025, with the margin recorded at -2.69%, suggesting ongoing operational challenges impacting profitability.

Overall, the data depict a company's transition from periods of operational losses to profitability, followed by a sustained decline in operating margins, culminating in persistent negative margins in recent periods. This pattern indicates that while the company experienced a profitable phase during 2021 and early 2022, recent performance has been characterized by profitability erosion, potentially reflecting increased operating costs, competitive pressures, or other operational difficulties.