Alpha and Omega Semiconductor Ltd (AOSL)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-3,756	355	-3,543	6,376	22,529	38,057	83,691	102,623	102,038	106,261	92,825	78,698	64,076	40,386	13,971	-2,989	-13,937	-8,705	703	4,935
Long-term debt	US$ in thousands	26,724	29,653	32,568	35,470	38,360	41,237	44,101	46,953	42,486	53,887	13,707	75,991	77,990	90,868	93,096	99,970	99,775	74,205	76,309	56,357
Total stockholders’ equity	US$ in thousands	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	289,879	295,870	291,123
Return on total capital		-0.41%	0.04%	-0.38%	0.69%	2.44%	4.10%	8.87%	11.01%	11.38%	12.06%	11.49%	16.50%	14.20%	9.26%	3.29%	-0.73%	-3.54%	-2.39%	0.19%	1.42%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-3,756K ÷ ($26,724K + $891,607K)
= -0.41%

Alpha and Omega Semiconductor Ltd's return on total capital has exhibited fluctuations over the past few quarters. The trend shows a mix of positive and negative returns, with varying levels of performance. In the most recent quarter, the return on total capital was negative at -0.41%, indicating that the company may not have been efficiently utilizing its total capital to generate returns for its stakeholders. However, in the previous quarter, the return improved slightly to 0.04%, but still remained relatively low.

Looking back further, there were periods of higher returns on total capital, such as in the second and third quarters of 2022, where returns were notably stronger at 11.38% and 11.01% respectively. The best performance in recent history was in the fourth quarter of 2021, with an impressive return of 16.50%.

On the other hand, there were also periods of lower returns, like in the first quarter of 2021, where the return on total capital was only 3.29%. The company experienced negative returns in some quarters, such as in the fourth quarter of 2020 and the first quarter of 2020.

Overall, the analysis of Alpha and Omega Semiconductor Ltd's return on total capital suggests that the company's performance in utilizing its total capital to generate returns has been inconsistent, with the need for improved efficiency and strategic capital deployment to enhance overall profitability.