Alpha and Omega Semiconductor Ltd (AOSL)

Financial leverage 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
Total assets	US$ in thousands	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	767,295	778,849	765,921
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
Financial leverage ratio		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	2.65	2.63	2.63

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,145,010K ÷ $891,607K
= 1.28

The financial leverage ratio of Alpha and Omega Semiconductor Ltd has shown fluctuations over the past couple of years, ranging from 1.28 to 2.70. This ratio indicates the company's level of financial leverage, or the extent to which the company relies on debt to finance its operations.

From the data provided, it is evident that the company's financial leverage has trended upwards from 1.28 in June 2024 to 2.70 in September 2019, with some fluctuations along the way. This increase in the ratio suggests that the company has been taking on more debt relative to its equity, which could potentially indicate a higher level of financial risk.

It is important to note that a high financial leverage ratio can magnify the impact of changes in operating income on the company's profitability and cash flow. Therefore, investors and analysts should closely monitor the company's ability to manage its debt levels and ensure that it can meet its financial obligations in the long term.