Alpha and Omega Semiconductor Ltd (AOSL)

Financial leverage ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Total assets US$ in thousands 1,032,690 1,145,010 1,199,740 1,298,630 918,573
Total stockholders’ equity US$ in thousands 822,332 891,607 883,919 854,093 373,205
Financial leverage ratio 1.26 1.28 1.36 1.52 2.46

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,032,690K ÷ $822,332K
= 1.26

The financial leverage ratio of Alpha and Omega Semiconductor Ltd demonstrates a declining trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 2.46 in 2021 to 1.52 in 2022, further declining to 1.36 in 2023, then to 1.28 in 2024, and reaching approximately 1.26 in 2025. This consistent reduction indicates that the company's reliance on debt relative to equity has diminished over the observed timeframe. Such a trend suggests an improvement in the company's financial structure, potentially reflecting efforts to reduce leverage, manage debt levels more prudently, or strengthen equity financing. Overall, the decreasing financial leverage ratio points toward a lower financial risk profile, aligning with a more conservative capital structure.