Alpha and Omega Semiconductor Ltd (AOSL)

Debt-to-capital 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 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
Debt-to-capital ratio		0.03	0.03	0.04	0.04	0.04	0.04	0.05	0.05	0.05	0.06	0.02	0.16	0.17	0.21	0.22	0.24	0.25	0.20	0.21	0.16

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 shown variations over the past several quarters. The ratio measures the proportion of the company's total debt to its total capital, which includes both debt and equity.

From December 2019 to March 2020, the debt-to-capital ratio was relatively stable at around 0.16 to 0.21. However, there was a notable increase in the ratio in June 2020 to September 2021, reaching as high as 0.25 in September 2021. This indicates that the company relied more on debt financing during that period.

Subsequently, there was a significant decrease in the debt-to-capital ratio from September 2021 to March 2022, dropping to 0.02, which suggests a reduction in the company's debt relative to its total capital. However, there was a sharp increase in the ratio in the following quarter, rising to 0.06 in June 2022.

From June 2022 to June 2024, the debt-to-capital ratio fluctuated within a relatively narrow range between 0.03 to 0.05, indicating a moderate level of debt compared to the company's total capital.

Overall, the trend in the debt-to-capital ratio of Alpha and Omega Semiconductor Ltd shows fluctuations over time, with periods of both increases and decreases in the level of debt relative to the company's total capital. It is important for investors and analysts to monitor these changes closely to assess the company's financial leverage and risk profile.