Alpha and Omega Semiconductor Ltd (AOSL)

Financial leverage ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Total assets US$ in thousands 1,116,370 1,133,940 1,137,620 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
Total stockholders’ equity US$ in thousands 886,291 902,580 895,272 891,607 888,937 894,558 885,279 883,919 887,258 899,674 885,469 854,093 826,901 793,990 400,871 373,205 345,287 331,718 309,108 293,689
Financial leverage ratio 1.26 1.26 1.27 1.28 1.30 1.32 1.36 1.36 1.41 1.43 1.48 1.52 1.46 1.40 2.47 2.46 2.53 2.57 2.63 2.70

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,116,370K ÷ $886,291K
= 1.26

The financial leverage ratio of Alpha and Omega Semiconductor Ltd exhibits a general declining trend over the period from June 30, 2020, to March 31, 2025. Initially, the ratio was relatively high at 2.70 in June 2020, indicating a moderate level of leverage. Throughout the subsequent quarters, there was a consistent decrease, reaching a low of approximately 1.32 by December 2023. Minor fluctuations are observable within this period, with slight increases and decreases, but the overall downward trajectory persisted.

This sustained reduction in the leverage ratio suggests that the company has been progressively reducing its reliance on debt financing relative to equity. Such a pattern could be reflective of strategic initiatives to deleverage the balance sheet, improve financial stability, or adapt to changing market conditions. The ratio stabilizes around 1.26 to 1.36 in the latest quarters, indicating a relatively lower and more controlled leverage level compared to the earlier years.

In summary, Alpha and Omega Semiconductor Ltd has demonstrated a consistent decline in its financial leverage ratio over the observed period, moving towards a more conservative financial structure. This trend signifies an effort to mitigate financial risk associated with high leverage and potentially improve long-term financial resilience.