Alpha and Omega Semiconductor Ltd (AOSL)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -17,997 | -17,775 | -13,735 | -2,643 | 606 | -4,379 | 4,438 | 19,712 | 35,009 | 85,607 | 497,223 | 495,070 | 498,802 | 479,095 | 73,203 | 60,224 | 37,413 | 10,531 | -6,683 | -17,909 |
| 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 |
| Pretax margin | -2.64% | -2.67% | -2.09% | -0.40% | 0.09% | -0.68% | 0.67% | 2.85% | 4.84% | 10.78% | 62.23% | 63.67% | 65.55% | 65.91% | 10.57% | 9.17% | 6.21% | 1.95% | -1.34% | -3.85% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-17,997K ÷ $680,974K
= -2.64%
The pretax margin of Alpha and Omega Semiconductor Ltd has exhibited notable fluctuations over the specified period. During the fiscal year ending June 30, 2020, the margin was negative at -3.85%, indicating that the company's pre-tax earnings were insufficient to cover its expenses, resulting in a loss before taxes. This negative trend persisted into September 2020, with the margin improving to -1.34%, yet remaining in negative territory.
A significant turnaround is observed starting from the fiscal quarter ending December 31, 2020, when the pretax margin transitioned into positive territory at 1.95%. The margins continued to improve steadily through 2021, reaching 6.21% in the March quarter, 9.17% in June, and further to 10.57% in September of the same year. The most pronounced divergence occurred during the quarter ending December 31, 2021, when the pretax margin surged dramatically to 65.91%. This exceptional increase suggests a substantial improvement in profitability, possibly due to operational efficiencies, favorable market conditions, or extraordinary items.
Throughout 2022, the margin remained high, with values of 65.55% and 63.67% in the March and June quarters respectively, followed by a slight decline but still robust levels at 62.23% in September. By the end of 2022, in December, the margin decreased sharply to 10.78%, reflecting a significant contraction in profitability, possibly due to market or company-specific challenges.
In 2023, the pretax margin continued to decline, reaching 4.84% in March and then decreasing further to 2.85% in June and 0.67% in September. A reversal into negative territory ensued towards the end of 2023, with the margin at -0.68% during December and further declines recorded in early 2024, culminating in -2.64% by March 2025. The consistent trend indicates a shift from prior periods of high profitability to ongoing struggles in maintaining positive pre-tax earnings, with margins turning consistently negative in recent quarters.
Overall, the company's pretax margin overlay highlights a trajectory characterized initially by deterioration from losses to substantial profitability, followed by a period of sustained high margins, and subsequently a pronounced decline into negative margins in recent periods. This pattern suggests significant changes in operational performance, market dynamics, or cost structures impacting profitability over time.
Peer comparison
Mar 31, 2025