Alpha and Omega Semiconductor Ltd (AOSL)

Pretax margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	-7,432	18,301	492,421	62,051	-6,248
Revenue	US$ in thousands	657,274	691,321	777,552	656,902	464,909
Pretax margin		-1.13%	2.65%	63.33%	9.45%	-1.34%

June 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-7,432K ÷ $657,274K
= -1.13%

The pretax margin of Alpha and Omega Semiconductor Ltd has fluctuated significantly over the past five years. In 2024, the company reported a negative pretax margin of -1.13%, indicating that its pre-tax earnings were insufficient to cover operating expenses and taxes. This represents a decline from the previous year when the pretax margin was 2.65%.

In 2023, the company experienced a significant decrease in pretax margin compared to 2022 when it was remarkably high at 63.33%. This surge in 2022 was likely due to unusually high profits relative to operating costs and taxes. The substantial contrast between 2022 and 2023 suggests a potential shift in the company's financial performance or unforeseen challenges faced in the following year.

The pretax margin of 9.45% in 2021 demonstrates a more moderate level of profitability compared to 2022. However, it is still considered healthy in most industries. In 2020, the company experienced a negative pretax margin of -1.34%, indicating a loss before tax and underscoring the challenges faced by the company in that year.

Overall, Alpha and Omega Semiconductor Ltd has displayed fluctuations in its pretax margin over the years, signaling potential changes in its financial performance and operational efficiency. This metric serves as a significant indicator of the company's ability to generate profits before accounting for tax obligations and reflects the effectiveness of its cost management strategies.