Alpha and Omega Semiconductor Ltd (AOSL)

Debt-to-equity 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-equity ratio		0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.07	0.02	0.19	0.21	0.26	0.28	0.32	0.34	0.26	0.26	0.19

June 30, 2024 calculation

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

The debt-to-equity ratio of Alpha and Omega Semiconductor Ltd has been relatively low and stable over the past few quarters, ranging from 0.02 to 0.07. This indicates that the company has been relying more on equity financing rather than debt to fund its operations and expansion.

However, there was a significant increase in the debt-to-equity ratio in the most recent quarters, reaching 0.19, 0.21, and 0.26, which suggests an increase in the company's debt relative to its equity. This may indicate a shift in the company's financing strategy towards taking on more debt, possibly for growth opportunities or other strategic initiatives.

It is essential for investors and stakeholders to monitor this trend closely to ensure that the company's increased leverage does not pose excessive financial risk or strain on its ability to meet its debt obligations in the future. Additionally, assessing the reasons behind the change in the debt-to-equity ratio and its potential impact on the company's overall financial health and stability is crucial for making informed investment decisions.