Alpha and Omega Semiconductor Ltd (AOSL)

Operating return on assets (Operating ROA)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	-3,756	355	-3,543	6,376	22,529	38,057	83,691	102,623	102,038	106,261	92,825	78,698	64,076	40,386	13,971	-2,989	-13,937	-13,568	-8,684	-8,516
Total assets	US$ in thousands	1,145,010	1,154,050	1,176,350	1,206,370	1,199,740	1,253,310	1,285,640	1,311,440	1,298,630	1,209,170	1,111,880	991,678	918,573	874,391	853,165	811,748	792,939	767,295	778,849	765,921
Operating ROA		-0.33%	0.03%	-0.30%	0.53%	1.88%	3.04%	6.51%	7.83%	7.86%	8.79%	8.35%	7.94%	6.98%	4.62%	1.64%	-0.37%	-1.76%	-1.77%	-1.11%	-1.11%

June 30, 2024 calculation

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

Operating return on assets (ROA) measures a company's ability to generate profits from its operating activities relative to its total assets. A higher operating ROA indicates better efficiency in utilizing assets to generate operating income. Alpha and Omega Semiconductor Ltd's operating ROA experienced fluctuations over the past several quarters, ranging from negative percentages to positive percentages.

The trend in Alpha and Omega's operating ROA shows improvement in recent quarters, with the highest values recorded in the most recent periods. The operating ROA increased from 1.64% in March 2021 to 3.04% in June 2023, reaching a peak of 8.79% in March 2022. This suggests an improvement in the company's operational efficiency and profitability during this time frame.

However, there are also periods where the operating ROA was negative, indicating that the company's operating income was insufficient to cover its asset base. For example, in the last reported quarter, the operating ROA was at -0.33%. This negative figure may raise concerns about the company's ability to generate profits from its core operations.

Overall, while Alpha and Omega Semiconductor Ltd has shown periods of strong performance in terms of operating ROA, the fluctuations in the ratio highlight the variability in the company's operating efficiency and profitability. Further analysis of the company's operating performance and asset utilization is necessary to gain a comprehensive understanding of its financial health.