Alpha and Omega Semiconductor Ltd (AOSL)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	-3,756	22,529	102,038	64,076	-13,937
Total assets	US$ in thousands	1,145,010	1,199,740	1,298,630	918,573	792,939
Operating ROA		-0.33%	1.88%	7.86%	6.98%	-1.76%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-3,756K ÷ $1,145,010K
= -0.33%

Alpha and Omega Semiconductor Ltd's operating return on assets (operating ROA) has exhibited a fluctuating trend over the past five years. In the most recent financial year ending on June 30, 2024, the company reported a negative operating ROA of -0.33%, indicating a decline from the positive trend observed in the previous years.

In the preceding financial years, Alpha and Omega Semiconductor Ltd demonstrated relatively strong operating ROA figures, with percentages ranging from 1.88% to 7.86%. The peak performance was recorded in the fiscal year ending on June 30, 2022, with an operating ROA of 7.86%. This suggests that the company was effectively utilizing its assets to generate operating profit during that period.

However, the operating ROA deteriorated in the subsequent year, dropping to 6.98% in the fiscal year ending on June 30, 2023. The negative operating ROA of -1.76% reported in the financial year ending on June 30, 2020 was also a cause for concern, indicating that the company was not efficiently utilizing its assets to generate operating income.

The recent negative operating ROA in the most recent fiscal year indicates that Alpha and Omega Semiconductor Ltd may be facing challenges in optimizing its asset utilization to generate operating profits. Further analysis of the company's operational efficiency and asset management strategies would be necessary to identify the root causes of the decline in operating ROA and to devise appropriate corrective measures.