Alpha and Omega Semiconductor Ltd (AOSL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 23.66% | 24.24% | 25.13% | 26.16% | 26.63% | 26.61% | 27.03% | 28.86% | 30.15% | 32.70% | 34.43% | 34.54% | 34.95% | 33.87% | 32.73% | 31.14% | 28.72% | 26.44% | 23.73% | 22.10% |
| Operating profit margin | -2.69% | -2.73% | -2.03% | -0.57% | 0.05% | -0.63% | 0.89% | 1.83% | 2.71% | 7.19% | 9.52% | 10.91% | 12.83% | 12.77% | 11.37% | 9.75% | 6.71% | 2.59% | -0.60% | -3.00% |
| 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% |
| Net profit margin | -3.33% | -3.46% | -2.94% | -1.69% | -1.44% | -2.45% | -0.97% | 2.00% | 4.15% | 9.96% | 57.04% | 58.28% | 60.14% | 60.82% | 10.39% | 8.85% | 6.39% | 2.94% | 0.39% | -1.42% |
The profitability analysis of Alpha and Omega Semiconductor Ltd over the period from June 2020 to March 2025 reveals significant fluctuations across key ratios, indicating both growth phases and periods of financial challenge.
Gross Profit Margin:
The company demonstrated a robust upward trend in gross profit margin from 22.10% on June 30, 2020, to a peak of 34.95% on March 31, 2022. This increase suggests improved efficiency in production or favorable pricing strategies during this period. Post the peak, there is a gradual decline, with the margin decreasing to 23.66% by March 31, 2025. This downward trend may reflect increased cost pressures, competitive market dynamics, or product mix changes.
Operating Profit Margin:
The operating profit margin experienced a notable turnaround from a significant loss of -3.00% on June 30, 2020, to positive margins reaching 12.83% on March 31, 2022. The transition to profitability during this period indicates effective cost management and operational improvements. However, subsequent quarters show a declining trend, with margins turning negative by December 2023 and further declining to -2.69% by March 2025. The persistent negative margins in recent periods signify ongoing operational challenges, possibly due to rising operating expenses or pricing pressures.
Pretax Margin:
Initially negative at -3.85% on June 30, 2020, the pretax margin improved substantially, reaching a high of 65.91% on December 31, 2021. The explosive increase during this period may be attributed to extraordinary gains, reduced expenses, or one-time income surges. Nonetheless, from early 2022 onward, a downward trend is evident, culminating in negative margins of -2.64% by March 2025, indicating reduced profitability before accounting for taxes.
Net Profit Margin:
Mirroring the pretax margin's trajectory, the net profit margin shifted from a loss of -1.42% in June 2020 to peak at 60.82% on December 31, 2021. The dramatic surge likely reflects extraordinary gains or extraordinary income recognized during the period. Subsequently, the margin declines sharply, turning negative by December 2023 and further deteriorating to -3.33% by March 2025. This pattern indicates the company's diminishing ability to convert revenues into net earnings, affected possibly by increased costs, adverse market conditions, or non-recurring losses.
Summary:
Overall, Alpha and Omega Semiconductor Ltd displayed strong profitability growth from mid-2020 through 2021, characterized by rising gross, operating, pretax, and net margins. However, from 2022 onwards, there is a consistent decline across all profitability ratios, turning negative by late 2023 and persisting into 2024 and early 2025. These trends suggest a shift from a period of operational and financial strength to ongoing profitability challenges, potentially requiring strategic adjustments to address rising costs or market pressures.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.64% | -1.60% | -1.18% | -0.33% | 0.03% | -0.34% | 0.49% | 1.06% | 1.56% | 4.44% | 5.80% | 6.53% | 8.08% | 8.35% | 7.94% | 6.98% | 4.62% | 1.64% | -0.37% | -1.76% |
| Return on assets (ROA) | -2.03% | -2.03% | -1.70% | -0.97% | -0.82% | -1.33% | -0.53% | 1.15% | 2.40% | 6.15% | 34.75% | 34.90% | 37.85% | 39.76% | 7.26% | 6.33% | 4.40% | 1.86% | 0.24% | -0.83% |
| Return on total capital | -1.71% | -1.81% | -1.50% | -0.42% | 0.01% | -0.43% | 0.58% | 2.41% | 4.22% | 9.23% | 11.62% | 11.98% | 12.85% | 11.69% | 19.63% | 17.17% | 11.70% | 4.21% | -0.97% | -4.75% |
| Return on equity (ROE) | -2.56% | -2.55% | -2.16% | -1.24% | -1.06% | -1.75% | -0.72% | 1.57% | 3.39% | 8.79% | 51.47% | 53.06% | 55.34% | 55.68% | 17.95% | 15.57% | 11.14% | 4.79% | 0.64% | -2.25% |
The profitability ratios of Alpha and Omega Semiconductor Ltd over the period from June 2020 through March 2025 reveal a trajectory marked initially by significant fluctuations, a period of robust profitability, followed by a notable decline into recurring losses.
Operating Return on Assets (Operating ROA):
Starting at a negative value of -1.76% in June 2020, the metric improved markedly through the following quarters, reaching positive territory at 1.64% by December 2020 and continuing an upward trend to peak at 8.35% in December 2021. This period reflects a substantial improvement in operating efficiency and asset utilization. However, subsequent quarters show a downward trend, with Operating ROA declining to 8.08% in March 2022, then gradually decreasing to 0.49% in September 2023, and turning negative thereafter, reaching -1.60% by December 2024 and further to -1.64% in March 2025. These declines indicate diminishing operating effectiveness and profitability.
Return on Assets (ROA):
The ROA followed a similar pattern, starting at -0.83% in June 2020, swinging into positive territory by September 2020 at 0.24%, and escalating sharply to 39.76% in December 2021. This peak signifies a period of exceptional asset efficiency and net profitability, possibly driven by favorable market conditions or internal operational improvements during that time. After this peak, ROA experienced a consistent downward trend, reaching marginal positive levels of 2.40% by March 2023, and subsequently turning negative, with values at -1.33% in December 2023 and declining further to -2.03% by March 2025. The recent trajectory suggests substantial challenges in generating profit relative to total assets.
Return on Total Capital:
This ratio underscores similar dynamics, moving from a negative of -4.75% in June 2020 to positive readings of up to 19.63% in September 2021. The subsequent decline into negative territory begins around March 2024, with the ratio reaching -1.81% in December 2024 and further down to -1.71% in March 2025, reflecting a deterioration in the capacity to generate returns on total invested capital.
Return on Equity (ROE):
The ROE exhibits substantial volatility, with a notable recovery to 55.68% in December 2021, indicating a period of highly profitable equity utilization. However, this growth is offset by subsequent declines, with the ROE falling into negative territory in late 2022 and continuing downward to -2.56% by March 2025. The pattern suggests periods of earnings volatility, influenced perhaps by operational, market, or strategic factors impacting shareholder profitability.
Overall, the profitable performance observed in late 2020 and 2021—marked by high ROA and ROE—was not sustained, with key ratios declining steadily into negative zones from 2022 onward. These trends reflect a significant deterioration in operational efficiency and profitability, necessitating attention to underlying operational or market-related challenges faced by the company.