Alpha and Omega Semiconductor Ltd (AOSL)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-22,649	-23,054	-19,363	-11,081	-9,453	-15,668	-6,408	13,844	30,039	79,116	455,777	453,163	457,611	442,061	71,966	58,116	38,472	15,877	1,969	-6,596
Total assets	US$ in thousands	1,116,370	1,133,940	1,137,620	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
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%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $-22,649K ÷ $1,116,370K
= -2.03%

The analysis of Alpha and Omega Semiconductor Ltd’s return on assets (ROA) over the specified periods reveals significant fluctuations, highlighting both periods of recovery and subsequent decline. Initially, the company experienced a negative ROA of -0.83% as of June 30, 2020, indicating that the company was not generating sufficient net income relative to its total assets during that period. By September 30, 2020, the ROA improved marginally to 0.24%, crossing into positive territory, and further increased substantially to 1.86% by the end of 2020, reflecting enhanced operational performance or possibly improved asset utilization.

The upward trend continued into 2021, with ROA reaching 4.40% on March 31 and then rising sharply to 6.33% on June 30, 2021, indicating a period of strong profitability relative to assets. This positive momentum persisted through September 30, 2021, with a ROA of 7.26%, and culminated in an exceptionally high ROA of approximately 39.76% at the end of 2021, suggesting either a substantial increase in net income, a decrease in asset base, or both.

However, from early 2022 onward, there was a noticeable decline in ROA. The figure dropped to 37.85% in March 2022 and continued decreasing gradually through the subsequent quarters, reaching around 34.75% by September 2022, still relatively high but trending downward. A marked decline followed, with ROA falling sharply to approximately 6.15% at the end of 2022. The downward trajectory persisted into 2023, with the ratio decreasing further to 2.40% in March and 1.15% by June. Subsequently, the ROA turned negative, registering -0.53% in September 2023, and continued to decline into December 2023 and beyond, reaching -1.33%, -0.82%, -0.97%, -1.70%, and ultimately settling at -2.03% in March 2025.

Overall, the data depict a trajectory from modest negative performance in mid-2020, through a period of rapid profitability increase peaking at the end of 2021, followed by a sustained decline into negative territory. The recent negative ROA indicates that the company has encountered challenges in generating net income from its assets, leading to diminishing efficiency in asset utilization or profitability impairments in the latter periods.