Alpha and Omega Semiconductor Ltd (AOSL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -25,271 | -15,152 | -16,365 | -13,389 | -3,756 | 57 | -3,841 | 5,175 | 21,328 | 37,433 | 83,067 | 102,902 | 102,317 | 106,261 | 92,825 | 78,698 | 64,076 | 40,386 | 13,971 | -2,989 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 822,332,000 | 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 |
| 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-25,271K ÷ ($—K + $822,332,000K)
= -0.00%
The analysis of Alpha and Omega Semiconductor Ltd's Return on Total Capital (ROTC) over the specified period indicates significant fluctuations in profitability and capital efficiency.
Initially, as of September 30, 2020, the company experienced a negative ROTC of -0.97%, reflecting a loss relative to its total capital. Moving into the subsequent quarter and year-end (December 31, 2020), there was a substantial turnaround, with ROTC rising to 4.21%, indicating improved profitability and effective utilization of total capital. This trend continued into March 31, 2021, with ROTC reaching 11.70%, and further climbing to a peak of 19.63% as of September 30, 2021. During this period, the company exhibited strong operating efficiency and value generation from its investments.
However, from the end of 2021 onwards, a downward trend commenced. By December 31, 2021, ROTC declined to 11.69%, and this decreasing pattern persisted into 2022, with values of 12.85% (March 31, 2022), 11.98% (June 30, 2022), and 11.62% (September 30, 2022). The decline became more pronounced in early 2023, with ROTC dropping to 4.22% as of March 31, 2023, and further diminishing to 2.41% by June 30, 2023. The downward trajectory continued into the latter part of 2023, with ROTC falling to 0.58% at September 30, 2023, and turning negative at -0.43% by December 31, 2023.
In 2024, the trend of declining returns persisted, with ROTC values of 0.01% (March 31, 2024), -0.42% (June 30, 2024), and further negative results of -1.50% (September 30, 2024) and -1.81% (December 31, 2024). The consecutive negative figures indicate that the company’s operations and capital investments have increasingly failed to generate positive returns, reflecting potential challenges in operational efficiency or market conditions. This deterioration continued into 2025, with ROTC reaching -1.71% by March 31 and effectively breaking even at -0.00% in June, suggesting a near-zero return scenario.
Overall, the company's ROTC exhibited an initial phase of robust profitability, reaching nearly 20% in late 2021, followed by a long-term decline into negative territory by late 2024 and into 2025. This pattern suggests a significant deterioration in the company's ability to generate profits from its invested total capital over the analyzed period, potentially attributable to operational, market, or strategic factors impacting performance.