Alpha and Omega Semiconductor Ltd (AOSL)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 886,291 902,580 895,272 891,607 888,937 894,558 885,279 883,919 887,258 899,674 885,469 854,093 826,901 793,990 400,871 373,205 345,287 331,718 309,108 293,689
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%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-22,649K ÷ $886,291K
= -2.56%

The analysis of Alpha and Omega Semiconductor Ltd.'s return on equity (ROE) over the period from June 30, 2020, to March 31, 2025, demonstrates significant fluctuations and an overall declining trend. Initially, the company experienced a negative ROE of -2.25% in June 2020, indicating a period of unprofitability or losses relative to shareholder equity. By September 2020, ROE moved into positive territory at 0.64%, reflecting an improvement in profitability.

Throughout 2020 and into early 2021, there was a notable upward trajectory, with ROE increasing steadily to 4.79% by December 31, 2020, and further escalating to 11.14% by March 31, 2021. This trend continued into mid-2021, reaching 15.57% in June, and further to 17.95% in September 2021. The most pronounced increase occurred between September 2021 and December 2021, when ROE surged dramatically to 55.68%, indicating a peak in profitability relative to equity.

Following this peak, the ROE stabilized at high levels in early 2022, recording around 55.34% in March and slightly declining to approximately 53.06% in June. However, from late 2022 onward, the ROE showed a marked deterioration. By December 2022, it had decreased sharply to 8.79%, and further to 3.39% in March 2023. The decline persisted through the subsequent quarters, turning negative in the latter part of 2023 and into 2024, with ROE reaching -2.55% by December 2024 and sustaining at approximately -2.56% in March 2025.

In summary, the company experienced a period of growth and strong profitability during 2021, with ROE reaching historically high levels, but this was followed by a sustained decline through 2022 and into 2025. The persistent negative ROE in recent periods indicates ongoing challenges in generating returns on shareholders' equity, suggesting either deteriorating operational performance, increased costs, or other structural issues affecting profitability.