Alpha and Omega Semiconductor Ltd (AOSL)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	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	767,295	778,849	765,921
Debt-to-assets ratio		0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.04	0.03	0.04	0.01	0.08	0.08	0.10	0.11	0.12	0.13	0.10	0.10	0.07

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 for Alpha and Omega Semiconductor Ltd has exhibited some fluctuation over the past few quarters. The ratio has generally been low, ranging from 0.01 to 0.13, indicating that the company relies more on equity financing rather than debt to fund its operations and investments.

In recent quarters, the ratio has been relatively stable around 0.03 to 0.04, suggesting a conservative approach to debt management. However, there were occasional spikes in the ratio, such as in the fourth quarter of 2021 and the third quarter of 2022, where the ratio reached 0.10 and 0.13 respectively. These spikes may indicate periods of increased debt relative to total assets, which could pose higher financial risk for the company.

Overall, the low debt-to-assets ratio indicates that Alpha and Omega Semiconductor Ltd has a healthy balance sheet with a low level of debt compared to its assets. However, investors and stakeholders should continue to monitor fluctuations in the ratio to assess the company's leverage and financial risk over time.