Alpha and Omega Semiconductor Ltd (AOSL)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	-28,436,000	-3,756	22,529	102,038	11,391
Total assets	US$ in thousands	1,032,690	1,145,010	1,199,740	1,298,630	918,573
Operating ROA		-2,753.59%	-0.33%	1.88%	7.86%	1.24%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $-28,436,000K ÷ $1,032,690K
= -2,753.59%

The operating return on assets (ROA) for Alpha and Omega Semiconductor Ltd demonstrates significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025.

In the fiscal year ending June 30, 2021, the operating ROA stood at 1.24%, indicating a modest efficiency in utilizing its assets to generate operating income. This measure improved substantially in the subsequent year, reaching 7.86% as of June 30, 2022, which suggests a period of enhanced operational performance and more effective asset utilization.

However, this upward trend was not sustained, and by June 30, 2023, the operating ROA declined sharply to 1.88%, approaching the earlier levels observed in 2021. This decline may reflect increased operational challenges or shifts in asset productivity.

Further deterioration is observed in the fiscal year ending June 30, 2024, where the operating ROA turned negative at -0.33%. Such a negative value indicates that the company's operating income was insufficient to cover the costs associated with its assets, implying potential operational difficulties or inefficiencies.

Most notably, as of June 30, 2025, the operating ROA deteriorated dramatically to -2,753.59%. This extraordinary negative figure signals severe operational distress, possibly due to extraordinary losses, asset impairments, or drastic decreases in operating income relative to asset base. It suggests that the company's core operational performance has markedly deteriorated during this period, raising concerns about financial sustainability and operational viability.

Overall, the trend indicates significant volatility and a marked decline in asset efficiency in recent years, culminating in a highly adverse operating ROA figure in 2025. This pattern warrants further investigation into underlying operational and financial factors affecting the company's performance.