Alpha and Omega Semiconductor Ltd (AOSL)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	26,724	38,360	42,486	77,990	99,775
Total assets	US$ in thousands	1,145,010	1,199,740	1,298,630	918,573	792,939
Debt-to-assets ratio		0.02	0.03	0.03	0.08	0.13

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $26,724K ÷ $1,145,010K
= 0.02

The debt-to-assets ratio of Alpha and Omega Semiconductor Ltd has shown a decreasing trend over the past five years, indicating an improving financial position in terms of leveraging debt compared to company assets. The ratio decreased from 0.13 in 2020 to 0.02 in 2024. This decline suggests that the company has been able to reduce its reliance on debt financing in relation to its total assets, which can be seen as a positive sign of financial stability and management efficiency. A lower debt-to-assets ratio implies a lower financial risk and a stronger ability to cover its debt obligations with its assets. It is worth acknowledging that the company has successfully managed to maintain a conservative level of debt relative to its asset base. This trend may reflect prudent financial management strategies or improved operational performance, potentially enhancing investor confidence in the company's financial health and future prospects.