Alpha and Omega Semiconductor Ltd (AOSL)
Profitability ratios
Return on sales
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 23.13% | 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% |
| Operating profit margin | -4.08% | -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% |
| Pretax margin | -14.95% | -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% |
| Net profit margin | -0.01% | -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% |
The profitability ratios of Alpha and Omega Semiconductor Ltd exhibit a trajectory marked by initial growth followed by a pronounced decline over the analyzed period.
Starting with the gross profit margin, the company demonstrated a consistent upward trend from 23.73% as of September 30, 2020, reaching a peak of approximately 34.95% on March 31, 2022. This indicates improving efficiency in managing cost of goods sold (COGS) relative to sales during this period. However, subsequent quarters revealed a gradual decline, with the gross profit margin declining to approximately 23.13% as of June 30, 2025. This downward shift suggests increasing production costs, pricing pressures, or a combination of both, impacting the company's ability to retain gross profit margins at earlier levels.
Operating profit margins followed a different pattern, starting from a negative value of -0.60% in September 2020, which aligns with initial operational challenges. The margin improved steadily, turning positive in December 2020 and reaching a peak of around 12.83% as of March 31, 2022. Nevertheless, the trend from mid-2022 onward highlights a steady deterioration, with recent figures turning negative, reaching -4.08% as of June 30, 2025. This indicates an increasing difficulty in converting gross profits into operating profits, likely due to rising operating expenses, inefficiencies, or external market pressures.
The pretax margin reflects a similar pattern, with an initial negative margin of -1.34% in September 2020, followed by growth to a substantial peak of approximately 65.91% in December 2021 and March 2022. The extraordinary spike appears anomalous, potentially attributable to one-time gains or extraordinary items in those periods. Since then, the pretax margin has markedly declined, culminating in negative values around -14.95% by June 2025, implying that after accounting for non-operational factors, the company is incurring losses.
Finally, the net profit margin shows a comparable trend, starting at a marginal 0.39% in September 2020 and culminating in significant declines, with values turning negative from late 2023 onward. The most recent data indicates a net loss of approximately -0.01% as of June 30, 2025. The trends across all profit ratios reveal a weakening profitability profile over time, with early gains not sustained, and recent performance reflecting operational and net profitability challenges.
In aggregate, the data suggests that Alpha and Omega Semiconductor Ltd experienced a period of profitability growth until mid-2022, succeeded by a consistent decline across gross, operating, pretax, and net margins, pointing towards increasing costs, competitive pressures, or internal operational issues impairing profit realization.
Return on investment
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.75% | -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% |
| Return on assets (ROA) | -0.01% | -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% |
| Return on total capital | -0.00% | -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% |
| Return on equity (ROE) | -0.01% | -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% |
The profitability ratios of Alpha and Omega Semiconductor Ltd reveal a mixed performance trajectory over the period from September 2020 to June 2025, reflecting notable fluctuations and trends across different measurement metrics.
Operating Return on Assets (Operating ROA):
This ratio exhibits significant volatility. Starting from a negative value of -0.37% in September 2020, it improved markedly into positive territory, peaking at 8.35% at the end of 2021. However, from early 2022 onwards, a downward trend is apparent, culminating in negative values of -2.75% by June 2025. This suggests that the company's core operations, in terms of asset utilization, initially became more efficient but subsequently deteriorated, hinting at challenges in operational efficiency or cost management in later periods.
Return on Assets (ROA):
Similarly, ROA demonstrates a high initial growth from 0.24% in September 2020 to a peak of 39.76% in December 2021. The subsequent decline is pronounced, with the ratio falling to negative territory at -2.03% by June 2025. The steep decline post-2021 implies a significant reduction in overall profitability relative to total assets, possibly owing to decreased net income margins or asset base changes impacting overall returns.
Return on Total Capital:
A comparable pattern emerges in this ratio. It increases from -0.97% in September 2020 to a high of 19.63% at the end of 2021, indicating improved capital efficiency during that period. Post-2021, the ratio declines, crossing into negative values around March 2024 and deeper into -1.81% by December 2024, reflecting diminished profitability derived from total capital employed.
Return on Equity (ROE):
The ROE illustrates the most dramatic shifts. It surges from a modest 0.64% in September 2020 to an outstanding peak of 55.68% at the close of 2021, underscoring highly effective utilization of shareholders’ equity during that time. However, from early 2022 onward, a consistent downward trend is evident, with the ratio turning negative at -2.56% in June 2025. This indicates that the company’s ability to generate profit from shareholders’ investments has been significantly eroded, reflecting operational, strategic, or market challenges impacting net profitability.
Overall Analysis:
The overall profitability performance of Alpha and Omega Semiconductor Ltd shows a period of robust growth ending in late 2021, followed by sustained decline and negative performance from 2022 onward. The initial gains suggest effective strategic execution and operational efficiency during the first part of the period, but the subsequent downturn points to deteriorating profitability, possibly due to increased costs, market pressures, or operational challenges affecting asset and equity returns. The persistence of negative ratios in recent periods highlights critical concerns regarding the company's capacity to generate earnings relative to its assets, capital, and equity, signaling potential financial distress or structural issues.