Alpha and Omega Semiconductor Ltd (AOSL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	891,607	883,919	854,093	373,205	293,689
Debt-to-capital ratio		0.03	0.04	0.05	0.17	0.25

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $26,724K ÷ ($26,724K + $891,607K)
= 0.03

The debt-to-capital ratio of Alpha and Omega Semiconductor Ltd has exhibited a declining trend over the past five years. From 2020 to 2024, the ratio has decreased from 0.25 to 0.03, indicating a significant improvement in the company's capital structure. A lower debt-to-capital ratio suggests that the company relies less on debt to finance its operations and investments, which can reduce financial risk and improve long-term sustainability. This trend may reflect effective debt management strategies or a shift towards utilizing more equity financing. Overall, the declining debt-to-capital ratio of Alpha and Omega Semiconductor Ltd signifies a healthier balance between debt and equity in the company's capital structure.